PF withdrawal from ATMs: Labour Secretary Sumita Dawra announced that the Labour and Employment Ministry is currently in the process of enhancing its IT systems to better serve the workforce of India. She mentioned that EPFO subscribers can expect significant improvements, as they will soon have the ability to directly withdraw funds from their provident accounts at ATMs starting next year.
“We are upgrading the IT system of our PF provision. We have already seen some improvements. The speed and auto-settlement of claims have increased, and unnecessary processes have been removed. Our ambition is to bring the IT infrastructure of our EPFO to the same level as our banking system. You will see major improvements in January 2025 when we will have an IT 2.1 version in EPFO…. Claimants, beneficiaries, or insured people will be able to withdraw claims directly through ATMs, with minimal human intervention,” said Sumitra Dawra, Secretary of Ministry of Labour and Employment.
The Employees’ Provident Fund Organisation has a significant number of active contributors, exceeding 70 million.
Additionally, the Labour Secretary highlighted the government’s commitment to enhancing EPFO services to improve the overall quality of life.
Progress on extending social security benefits to gig workers is well underway, with Dawra indicating that plans are in advanced stages, although a specific timeline was not provided.
The government’s initiative to enhance EPFO services and streamline ease of living includes the issuance of a new card for PF withdrawals, which can conveniently be done through ATMs. However, there will be a withdrawal limit of 50% on the total deposit.
The Code on Social Security, 2020, enacted by Parliament, introduced a definition for gig and platform workers. It also incorporates provisions regarding their social security and welfare.
Rules for withdrawal from EPFO
You are not allowed to withdraw PF funds, either partially or fully, while still employed.
If you have been unemployed for at least one month, you can withdraw up to 75% of your PF balance.
After two months of unemployment, you are eligible to withdraw the entire balance.