PF withdrawal from ATM, increase in employee contribution limit: Everything govt may be planning

The government may be planning a complete overhaul of the provident fund system in a series of new rollouts.

There are also reportedly plans to remove the 12% cap from the employee provident fund contribution limit.

These initiatives are a part of the EPFO 3.0 plan which may be rolled out by May-June 2025.

The reported EPFO 3.0 scheme aims to give subscribers greater flexibility to save more.

Reforms to Employees' Pension Scheme 1995

At present, while 8.33% of the employer’s contribution goes towards EPF and 3.67% is channelled into the EPS account, the employee’s entire 12% contribution goes towards EPF.

The government may allow employees to allocate a larger share of their contributions directly to the EPS.

No need for a new UAN

On Friday, the retirement body took to the microblogging platform X (formerly Twitter) to clarify that employees leaving their jobs need not change their Universal Account Number (UAN).

This is because a member cannot have more than one UAN.

“Employees are not required to generate a new UAN when leaving their old employment. A member cannot have more than one UAN. There is no requirement for having a fresh UAN at all, in any case of unemployment or change of employment,” EPFO said.