In a major step towards enhancing the convenience of India’s workforce, the Labour Ministry has announced that starting in 2025, Employees’ Provident Fund (EPFO) subscribers will be able to withdraw their Provident Fund (PF) through ATMs. This new initiative is part of the Ministry’s ongoing efforts to upgrade its IT systems and streamline processes for quicker, easier access to PF funds.
Labour Ministry Secretary Sumita Dawra confirmed the news on Wednesday, stating that the upgraded systems would offer “enhanced services” to the country’s large workforce. She emphasized that the ministry has been focusing on settling claims promptly and improving the ease of living for beneficiaries, reducing human intervention and making it simpler for claimants to access their PF claims.
Dawra added, “Systems are evolving, and every two to three months, you will notice significant improvements. I believe there will be a major enhancement by January 2025.” The feature was initially expected to roll out between May and June 2025, according to reports, but the ministry is aiming for earlier implementation in January.
Currently, the Employees’ Provident Fund Organisation (EPFO) has over 70 million active contributors, and the government is committed to expanding services for its vast base of subscribers. Alongside the ATM withdrawal feature, the ministry is working on additional measures to make the PF system more flexible. Notably, discussions are underway to remove the 12% cap on PF contributions, allowing employees to contribute beyond the fixed percentage.
Further advancements include plans to extend social security benefits to gig workers, with a comprehensive scheme in the works that will provide medical coverage, provident funds, and financial support for disabilities. Additionally, there are talks of increasing the salary limit for the EPF scheme, which was last revised in 2024, when it was raised from ₹6,500 to ₹15,000.
The government is also focusing on the welfare of gig and platform workers. A committee has been formed to propose a framework for providing social security benefits to this growing workforce, a move that was first laid out in the 2020 Code on Social Security.
The Labour Secretary also noted improvements in the employment landscape, citing a significant drop in the unemployment rate from 6% in 2017 to 3.2% today. The Labour Force Participation Rate has seen a steady rise, with the Worker Participation Ratio now reaching 58%.
These progressive initiatives demonstrate the government’s focus on making it easier for workers, both formal and informal, to access their rights and benefits in a more efficient and user-friendly manner.
Sources By Agencies
