The Provident Fund (PF) is a savings scheme for employees in India, managed by the Employees' Provident Fund Organisation (EPFO). Here are some key aspects of the PF system.
The latest advancements introduced in (PF 3.0), are aimed at improving the Provident Fund system for employees across India. These updates bring significant changes to withdrawal and claim procedures, making them more efficient and user-friendly. Transparency in PF management has been enhanced, ensuring better accountability and ease of use. Additionally, modifications in contribution limits and interest rates have been introduced, alongside features that allow easier tracking of your PF account. Stay informed about these important changes and understand how they can benefit you as an employee.
EPF is a welfare scheme to secure a better future for employees. Under the EPF Act, organizations with more than 20 employees are required to register with the EPFO, with both the employer and employee contributing 12% of the basic pay to the EPF account. It provides a retirement benefits scheme where employees and employers contribute a portion of the employee's basic pay monthly.
Several updates have to be developed of upcoming in EPFO's new app of (UMANG) and The Employees' Provident Fund Organisation (EPFO) is expected to launch its ATM card and mobile app by June 2025. This is part of the EPFO 3.0 initiative, which aims to improve the digital platform for EPFO members.
1. Contribution Rate Changes:
Both employees and employers contribute a certain percentage of the employee's salary to the PF account. Typically, the contribution is 12% of the basic salary. he wages under EPF and EPS 95 from ₹15,000 to ₹21,000 in the Budget 2025. The minimum guaranteed pension amount for EPFO members has increased to ₹7,500, including Dearness Allowance (DA).
Helped streamline the management of PF accounts, allowing employees to consolidate their accounts and track their contributions easily. In 2014, the government revised the EPS, allowing members to opt for higher pension contributions based on their actual salary instead of the previous ceiling of ₹6,500.
2. Enrollment Figures:
The EPFO scheme has seen substantial enrolment, with EPFO welcoming around 8.87 lakh new workers joining in November 2024 alone. These figures indicate the scheme’s expanding reach on a monthly basis of importance.
Based on EPFO's November 2024 provisional payroll data, there was a net addition of 14.63 lakh members, which represents a 4.88% rise over November 2023.
3. Scheme Expansion:
The EPFO Amnesty Scheme 2024 has been approved to encourage employers to resolve past compliance issues without penalties, promoting job creation.
The amnesty scheme will support the implementation of the ELI Scheme, which was announced in the Budget to foster employment generation and incentivize the formalization of jobs in the economy.
4. New Initiatives and Infrastructure:
Starting in January 2025, EPFO subscribers can withdraw their provident fund directly from ATM. Subscribers need to link their UAN, visit an EPFO-enabled ATM, select the EPF withdrawal option, enter their UAN and the withdrawal amount, complete verification using OTP or other security measures, and then receive the cash
Members with Aadhaar-verified Universal Account Numbers (UAN) can now directly modify personal details online without documentary evidence. This includes details such as name, birth date, gender, nationality, parental information, marital status, spouse details, and employment dates.
These changes are expected to improve retirement planning, increase financial security, and enhance transparency in the process. Aimed at enhancing convenience, increasing accessibility, and providing better management of retirement savings for both private and government employees.
It helps the banking sector join of government provided by EPFO members may soon be able to withdraw their PF savings directly from ATMs using an ATM card, offering instant access to their savings. Organizations with more than 20 employees are required to register with the EPFO, with both the employer and employee contributing 12% of the basic pay to the EPF account.
The current limit of ₹15,000 on the basic salary for EPF contributions may be removed, allowing employees to contribute based on their actual salary. This could result in a larger retirement fund and a higher monthly pension.
EPFO is upgrading its IT infrastructure to allow for faster claims processing with minimal human intervention, increased transparency, and reduced fraud cases
How These Updates Impact You:
Employers can apply online for PF Code numbers for establishments where the Act applies. This facility extends to employers who, with the consent of the majority of employees, want the Act to be applied to their establishment.
The EPFO has eliminated the requirement for employer approval in many online PF transfer cases when changing jobs. Now, transfers between Member IDs linked with the same Aadhaar-verified UAN can proceed without employer intervention. This speeds up the transfer process, reduces paperwork, and enhances efficiency.
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