The government is collaborating with banks to enable provident fund (PF) withdrawals through ATMs, set to begin in April for enhanced convenience. Additionally, employees will have the option to withdraw PF using the unified payments interface (UPI), as reported by NDTV profit, citing sources from the Labour Ministry. This initiative aims to simplify the EPF withdrawal process, which currently involves extensive form submissions.
Under the existing EPF scheme, employees contribute 12% of their basic salary and dearness allowance monthly, matched by an equal contribution from employers. The interest rate for the fiscal year 2025-26 stands at 8.25%. Labour and Employment Minister Mansukh Mandaviya revealed plans to transform EPFO offices into modern, technology-driven service centers akin to Passport Seva Kendras, ensuring easy access to EPF services nationwide. These centers will facilitate prompt resolution of EPF-related concerns for citizens at any regional office.
To enhance accessibility, especially for new users and those unfamiliar with digital platforms, the government will introduce EPF Suvidha Providers. These authorized facilitators will assist members in navigating benefits and resolving issues, bridging the gap between citizens and the EPFO. Mandaviya emphasized the EPFO’s substantial fund corpus of Rs 28 lakh crore, offering a guaranteed 8.25% annual interest rate backed by the Government of India.
Continuing the reform agenda, the EPFO has streamlined processes with automation for settlements up to Rs 5 lakh, eased withdrawals of up to 75% of the EPF balance, and simplified account transfers. EPF-related matters can now be addressed at any EPFO regional office nationwide, regardless of the member’s location. The Labour Ministry is gearing up to enforce the four new Labour Codes starting April 1.
