EPFO to launch EPFO 3.0 with major upgrades

The Employee Provident Fund Organisation (EPFO) is set to roll out a new version, EPFO 3.0, which promises several significant upgrades aimed at enhancing the convenience and flexibility of the provident fund system. One of the most anticipated features is the ability to withdraw provident fund (PF) money via ATMs. The labor ministry is planning to issue a special card that will allow employees to access their PF funds at ATMs, with a cap set at 50% of the total deposit.

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This new facility is expected to be available sometime between May and June 2025, providing easier access to PF savings. However, there will be a cap on how much can be withdrawn at a time.

Another key development is the proposed removal of the current 12% contribution limit, allowing employees to contribute more to their PF account if they choose. Employers, however, will continue contributing based on the employee's pay, so there will be no additional burden on them.

Additionally, the government plans to convert the accumulated PF savings into a pension, subject to the employee’s approval. The government is also considering raising the salary cap for EPF eligibility, which was last increased in 2024.

While these changes are still in the early stages, they signify a major shift in how employees will manage their retirement savings.