EPFO (Employees Provident Fund Organization) members will soon be able to withdraw their provident fund (PF) through UPI and ATM, which will make the process faster and more convenient. According to Sumita Davra, Secretary, Ministry of Labor and Employment, the service is expected to be launched by May or June 2025. Here you need to know about this new initiative and how it will benefit the workers.
How EPFO Withdrawal via UPI and ATM Will Work
According to Sumita Davra’s announcement, EPFO members will have the capacity to withdraw up to Rs 1 lakh from their PF accounts through UPI or ATM. This facility will provide members a quick access to their funds, so that they can check their remaining amount and withdraw money directly through an automated system.
Currently, it takes about 1-2 weeks for approval for PF withdrawal requests. However, with this new system, members will be able to withdraw money immediately after linking their PF accounts to UPI. The purpose of this reform is to provide more financial flexibility to workers across India.
EPFO’s Digital Infrastructure Improvements
To ensure smooth withdrawal, EPFO has increased its digital infrastructure. By integrating more than 120 databases, EPFO has reduced the processing time of claims to only 3 days. 95% of the claims are now automated, causing the process to take place very fast. With these reforms, employees will experience quick and trouble -free access to their PF funds.
How to Withdraw PF Money from ATM
Under the new system, EPFO will issue a special ATM card to its customers. This card will be directly connected to their PF account, allowing users to withdraw money directly from ATMs.
EPFO PF Withdrawal Rules
EPFO provides clear rules for PF withdrawal, especially in cases such as job loss. If a member loses his job, they can extract 75% of PF balance after 1 month unemployment. The remaining 25% can be withdrawn after 2 months unemployment.
Income Tax Rules for PF Withdrawal
When withdrawing PF funds, it’s important to understand the income tax implications:
- Tax-Free Withdrawal: If an employee has completed 5 years of continuous service in one or more companies, they are not responsible for income tax on PF withdrawal. The 5 -year service period can be added to several jobs.
- TDS on Early Withdrawal: If an employee withdraws more than Rs 50,000 from his PF account before completing a 5 -year service, he will be subject to 10% TD. If the employee does not have a PAN card, the TDS rate will increase by 30%.
- Form 15 G/15H: Employees can avoid cuts by forming Form 15G (for people under 60) or Form 15H (for senior citizens), provided that their total income is less than taxable limit
