If you are a private sector employee and your PF account receives monthly deposits, significant changes are expected in the new year, 2025. The Employees’ Provident Fund Organization (EPFO) is set to implement several key changes that will affect millions of salaried employees across India. These changes aim to enhance user experience, streamline processes, and improve transparency between employees and employers. They are also expected to significantly strengthen the financial security of Indian employees, ensuring a safer and more robust retirement future. Here are some of the important changes anticipated in 2025.
1. PF Money Withdrawal via ATM
According to reports, EPFO will soon issue ATM cards, allowing members to withdraw money from their PF accounts 24/7. This is part of a larger initiative to improve service offerings to members. The ATM withdrawal feature will be implemented during the next financial year.
2. Removal of Employee Contribution Limit
Currently, employees contribute 12% of their basic salary each month to the EPF account, with a cap of Rs 15,000 set by EPFO. However, the government is considering abolishing this limit, enabling employees to contribute based on their actual salary. This change will allow employees to contribute more to their PF account, potentially leading to a larger retirement corpus.
3. Increase in Equity Investment Limit
EPFO is considering reinvesting a portion of its Exchange-Traded Fund (ETF) income into shares and other assets to boost returns. This potential move, aimed at increasing profitability, may be implemented during the upcoming financial year.
4. Pension Access from Any Bank Branch
In September 2024, Union Minister Mansukh Mandaviya approved the Centralized Pension Payment System (CPPS). This system will allow 7.8 million members of the Employees’ Pension Scheme to receive their pensions from any bank branch. The rule will officially take effect on January 1, 2025, ensuring greater convenience for pensioners.
5. Higher Pension Application Deadlines
The EPFO has announced final deadlines for employers to comply with higher pension-related processes:
- Employers must upload employees’ salary details by January 31, 2025.
- Any clarifications requested by the EPFO must be provided by employers no later than January 15, 2025.
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