Good news for Employees' Provident Fund Organization (EPFO) account holders! The government is introducing a new facility that will simplify the process of withdrawing Provident Fund (PF) money. Soon, EPFO subscribers will be able to withdraw their funds directly through UPI and ATMs, making transactions faster and more convenient.

At present, both the employee and employer contribute 12% of the employee’s basic salary, dearness allowance (DA), and other allowances towards the EPF. While the employee’s entire contribution goes into the EPF, the employer’s contribution is divided as follows:

• 3.67% towards EPF

• 8.33% towards Employees’ Pension Scheme (EPS)

The central government is working on integrating EPF withdrawals with digital payment systems. Discussions are underway with the National Payments Corporation of India (NPCI) to finalize the implementation, and if everything proceeds as planned, this facility will be live within the next 2-3 months.

With the integration of UPI, EPFO members will receive their claimed amount directly in their digital wallets. This upgrade will significantly reduce the processing time, which currently takes around seven days. Once launched, PF withdrawals will be processed within hours, improving transparency and reducing claim rejections.

Under the EPFO 3.0 program, EPFO will also introduce an ATM withdrawal feature. This will function similarly to a debit card, allowing users to withdraw PF money directly from ATMs. To use this service, employees must:

The digital wallet integration for UPI transactions is expected to go live between May and June 2025. The ATM withdrawal facility is also set to launch soon after. This move is aimed at streamlining PF withdrawals, making them as simple as withdrawing money from a bank account.

The upcoming changes in EPFO’s withdrawal process will offer greater convenience and efficiency for employees. By leveraging digital platforms like UPI and ATMs, the government is ensuring quicker access to PF funds without unnecessary delays. Stay tuned for official updates on the rollout of this new facility!