Subscribers may have the option to withdraw PF directly using ATMs, a move aimed at making withdrawals more convenient.
The report said that employees could soon have the flexibility to contribute to their PF accounts based on their savings preferences too.
The plan might also allow deposits beyond the current limit at any time.
However, employers’ contributions will remain salary-based, ensuring stability in the system.
More freedom for higher savings
This proposal is in the initial discussion phase. The government’s primary goal is to give subscribers greater freedom to save more.
Subscribers may also convert their additional amounts into higher pensions for future benefits, the report said.
PF withdrawal through ATMs by mid-2025
The Labour Ministry is reportedly working on issuing cards to enable PF withdrawals via ATMs.
The rollout of this facility is expected by May-June 2025, bringing further convenience to EPFO subscribers.
Revamping EPS-95 for higher pensions
On Thursday (November 28), a PTI report revealed that the Labour Ministry is also working on a revamp of the Employees’ Pension Scheme 1995 (EPS-95).
Currently, employees’ entire 12% contribution goes to the EPF account, while 8.33% of the employer’s contribution is allocated to EPS-95, and the remaining 3.67% to EPF.
The report said that the ministry is considering allowing employees to contribute directly to EPS-95.
This move would enable subscribers to increase their pension benefits under the revamped structure.
Higher contributions to EPS-95 could ensure better retirement benefits.
