The Employees’ Provident Fund Organisation (EPFO) is set to introduce several key changes to its guidelines and services for members, with many of these updates expected to roll out in 2025. These revisions aim to provide greater convenience for both private sector and government employees while helping them better manage their retirement savings.

Key Changes in EPFO Rules

1. Change in Contribution Limits
Currently, employees contribute 12% of their basic salary to their EPF accounts, but there is a limit of ₹15,000. In the future, employees may be able to contribute based on their actual salary, allowing them to save more for retirement and receive a higher pension.

2. ATM Withdrawals for PF Money
Soon, EPFO members will be able to withdraw their provident fund money using an ATM card. This new service, which will be available by 2025-26, will make it easy for members to access their PF money anytime and anywhere.

Sumita Dawra, Secretary of the Labour Ministry, said that this change will improve services for workers by making it easier to access their provident funds.

Read in detail: EPFO Members May Soon Withdraw PF Funds via ATMs

3. Upgrade to EPFO IT System
EPFO is working on upgrading its IT systems to make the process of withdrawing funds faster and more efficient. The system upgrade is expected to be finished by June 2025, helping members get their claims settled quickly and reducing fraud.

4. Option for Equity Investment
EPFO is thinking about allowing members to invest their money in stocks directly (instead of just Exchange-Traded Funds, or ETFs). This could help members grow their savings faster and diversify their investments.

5. Easier Pension Withdrawals
Under new rules, pensioners will be able to withdraw their pensions from any bank in the country without needing extra verification. This will save time and offer more convenience for pensioners.

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EPFO Job Creation Data

In October 2024, EPFO saw the addition of 1.34 million new members, a significant contribution to formal job creation. While this number is slightly lower than the 1.52 million added in October 2023, it highlights continued growth and progress. October remains an important month for hiring, and the increase in EPFO memberships reflects better job opportunities and growing awareness of employee benefits.

Rejoining Members: A notable 1.29 million members rejoined EPFO in October 2024, marking a 16.2% year-on-year increase. This is a strong indicator of employees’ confidence in securing their retirement savings by transferring their funds instead of opting for settlement.

Female Membership Growth: There has been a steady rise in female membership in EPFO. In October 2024, around 0.27 million new women members joined, contributing to a more diverse and inclusive workforce, reinforcing the trend of gender equality in employment.

Top States for EPFO Membership Growth

The states leading in EPFO membership growth are Maharashtra, Karnataka, Tamil Nadu, Delhi, Haryana, Telangana, and Gujarat, which together added 0.82 million new members in October 2024. Maharashtra alone contributed 22.1% of the total new memberships.

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