Latest news with #Employees'PensionScheme
Time of India
30-05-2025
- Business
- Time of India
EPFO likely to allow instant PF withdrawals via UPI and ATMs from June 2025
The Employees' Provident Fund Organisation (EPFO) is set to revolutionize the way millions of employees access their provident fund (PF) savings. Starting June 2025, EPF members will be able to instantly withdraw PF funds via Unified Payments Interface (UPI) and ATMs, according to DD News. This major step is being implemented with the support of the Ministry of Labour and Employment and has already received approval from the National Payments Corporation of India (NPCI). The new facility will also allow users to check their PF balance directly on UPI platforms and transfer funds to their bank accounts without delays. Instant PF withdrawals under EPFO 3.0 Currently, PF withdrawals involve submitting online claims followed by a waiting period for approval from EPFO field offices. This process can take several days or even weeks. However, the upcoming integration with UPI and ATMs is expected to make settlements instantaneous. Members will be allowed to withdraw up to ₹1 lakh instantly—especially helpful in emergencies. 'EPFO has made significant improvements in its digital infrastructure by integrating over 120 databases,' said Sumita Dawra, Secretary at the Ministry of Labour and Employment. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Perdagangkan CFD Emas dengan Broker Tepercaya IC Markets Mendaftar Undo 'These efforts have reduced claim processing time to just three days, with 95 per cent of claims now being processed automatically. Further upgrades are also in progress to make the system even more efficient.' Expanded withdrawal purposes Currently, the EPF scheme allows withdrawals for medical emergencies, housing, education, and marriage, but members must meet specific eligibility criteria and provide proper documentation. With the upcoming changes, the scope of permitted withdrawal reasons will be expanded, giving employees greater financial flexibility for key life events. In another significant development, pensioners under the Employees' Pension Scheme (EPS) of 1995 will be able to access their pensions from any bank branch across India starting January 1, 2025. This means retirees will no longer be restricted to specific banks or branches. Even if a pensioner relocates or changes banks, pension disbursal will continue seamlessly through the Centralised Pension Processing System (CPPS), eliminating the need to transfer Pension Payment Orders (PPO) between offices. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
30-05-2025
- Business
- Time of India
EPF withdrawals via ATM, instant UPI as EPFO 3.0 likely to roll out in June 2025
Tired of too many ads? Remove Ads Withdrawing EPF funds instantly under EPFO 3.0 Tired of too many ads? Remove Ads Pension changes for EPFO from January 1, 2025 The Employees' Provident Fund Organisation (EPFO) plans to change how millions of employees withdraw their provident fund (PF) funds. It is likely that from June 2025, EPF members will be able to withdraw PF funds instantaneously via UPI and ATMs, eliminating the lengthy and methods of the past, according to the DD initiative is being implemented with the support of the Ministry of Labour and Employment and has received approval from the National Payments Corporation of India (NPCI). EPF members will also be able to check their PF balance directly on UPI platforms and transfer funds to their preferred bank accounts without read: EPF changes in 2025: New form to transfer EPF account, instant UAN activation, other announcements made by EPFO that you need to know Currently, Withdrawing PF funds involves submitting online claims and waiting for approvals from field offices of EPFO. This can take several days or even weeks. However, with the upcoming UPI integration and withdrawal facility via ATM, EPF withdrawal settlement will become instant and are the days of submitting online claims and waiting days or even weeks for PF withdrawals. With the new UPI integration, EPFO members can withdraw up to Rs 1 lakh instantly, making funds readily available during emergencies. According to Sumita Dawra, Secretary at the Ministry of Labour and Employment, this update allows employees to check their PF balance directly on UPI platforms and transfer funds to their bank accounts without delays, as per DD reasons for PF WithdrawalsCurrently, EPF scheme allows withdrawals for medical emergencies, Housing (e.g., home purchases or renovations), Education (e.g., funding higher studies), Marriage (e.g., wedding expenses). However, to make the EPF withdrawal, an EPF member is required to fulfill certain criteria. Once the specific conditions are met, KYC and other documents are in order, only then EPFO successfully settles the proposal to expand the EPF withdrawal scope ensures that employees can tap into their PF savings for critical life events, making the system more responsive to their needs. This step aims to give more financial flexibility to employees. 'EPFO has made significant improvements in its digital infrastructure by integrating over 120 databases,' Dawra said.'These efforts have reduced claim processing time to just three days, with 95 per cent of claims now being processed automatically. Further upgrades are also in progress to make the system even more efficient,' she covered by the Employees' Pension Scheme (EPS) of 1995 will be able to access their pension from any bank branch in India as of January 1, 2025. This means that retirees can obtain their benefits from any bank or branch in even in the event that a pensioner relocates or switches banks or branches, the CPPS will guarantee pension delivery across India without requiring the transfer of Pension Payment Orders (PPO) from one office to another.
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Business Standard
13-05-2025
- Business
- Business Standard
Over 4 million Beedi workers likely to get relief on pension math
Labour min to examine classifying beedi industry as 'seasonal' establishments Premium Shiva Rajora New Delhi Listen to This Article In a move that could benefit over 4 million beedi workers in nearly 8,000 establishments covered under the Employees' Provident Fund Organisation (EPFO), the Union labour ministry is going to examine classifying the beedi industry as 'seasonal' establishments. The move will relax the 'non-contributory period' (NCP) norms under the Employees' Pension Scheme, 1995 (EPS-95) for beedi workers, making it easier for them to qualify for pension benefits. A non-contributory period (NCP) refers to a period when an employee is absent from work and does not receive wages. During such periods, no contribution is made to the employee's provident fund (PF)
Mint
01-05-2025
- General
- Mint
Why missing your EPF nomination could leave your family in limbo
It's not just death that makes withdrawals from the Employees' Provident Fund (EPF) tough—sometimes, even the living struggle. But when a member dies without naming a nominee, the fallout can be far worse: delayed payouts, bitter family disputes, and endless paperwork. Take the case of a man who died in his thirties without naming a nominee. He was married, but his wife is estranged from his parents. After his death, both sides filed claims for the provident fund and pension. 'The employer says they will process the payment in favour of the wife, but we are trying to get the parents an equal share," said Mohammed Saif, a provident fund (PF) expert at FinRight, a startup focused on EPF issues. Read this | Saying no to EPF isn't easy—but it's possible But can an employer decide on its own? Not if we go by EPF and Employees' Pension Scheme (EPS) rules as defined by the Employees' Provident Fund Organisation (EPFO). In no-nomination cases, the PF amount is equally distributed among all surviving family members—except for sons who have attained majority, sons of a deceased son who have attained majority, married daughters with a living husband, and married daughters of a deceased son whose husband is alive. 'Siblings aren't counted among family members. The pension, however, will only go to the wife and children," said Sanjay Kesari, regional provident fund commissioner-I (retired), EPFO. That means, in the case mentioned above, the PF amount will be equally distributed between the wife and the parents, while only the spouse is eligible for the pension. To avoid such disputes, PF members must take nominations seriously. Remember: EPF and EPS nominees are end beneficiaries—not custodians. Succession laws of respective religions don't apply here. Few members realise that EPF and EPS nominations are filed together—but apply differently. 'Form 2 is used for nominations. It has two parts—Part A and Part B. Part A covers EPF nominations, while Part B is for EPS nominations. Nominees listed in Part A are also eligible for EDLI (Employees Deposit Linked Insurance scheme) benefits," said Adarsh Vir Singh, founder of social security consulting firm Nidhi Niyojan. Read this | Higher EPS pension: Why do employees feel shortchanged? So who can be nominated? That depends on how 'family' is defined under the EPF 1952 and EPS 1995 schemes. Under EPF, the family includes: dependent father, dependent mother, wife, sons (including adult sons), daughters (including married ones), deceased son's widow, deceased son's sons, and deceased son's daughters. Female members may also nominate their husband's dependent parents. 'Both male and female members can state in writing if they want to exclude their spouse—or, in the case of women, the husband's parents—from the definition of family," said Kesari. If a member doesn't have any family as defined under the EPF scheme, they may nominate anyone of their choice—even a non-relative. 'It could be a friend, for example," Singh said. Read this | EPFO alert! How to avoid, deal with rejections, delays The EPS 1995 scheme is more restrictive: the family includes only the spouse and children. 'If a member has a spouse and children at the time of filing a nomination, she must include them—even if she doesn't want to assign them a share—because they alone will be eligible for pension. If the member is single, or if the spouse or children are no longer alive, she may nominate another family member or a non-relative," said Kesari. Marriage automatically nullifies any existing EPF and EPS nominations. If you get married, you must file a fresh nomination updating your family details—and once you have children, add them as well. 'Most people become EPF members when they're unmarried. They often don't realise that after marriage, the spouse should be the default nominee. In most cases, old nominations continue and if those members pass away, their case will be treated as a no-nomination case, in case of dispute between family members, this can lead to a long-drawn process of seeking legal succession certificate from court," said Singh of Nidhi Niyojan. To avoid this, use the EPFO's e-nomination facility. Log in to the member portal with your UAN (universal account number) and password, and go to the 'e-nomination' section under 'Manage'. You'll need to add your family members, upload their photos, and enter their Aadhaar numbers. The system verifies Aadhaar data against name, date of birth, and gender. Only on successful verification will the family members be added. If you have no spouse or children, the system will prompt you to fill EPS nominations instead. Once all family members are added, a PDF is generated. You must e-sign it using OTP authentication via your Aadhaar-linked mobile number. Without this e-sign, the nomination will not be valid. E-nomination offers a big advantage over physical forms—it allows family members to file online claims after the member's death using OTP-based login on their Aadhaar-linked mobile numbers. 'If e-nomination exists, a death claim can be filed online. There's a separate link for this on the EPFO website. Nominees should not try logging into the member's portal after their death. Also, if the member passed away while still employed, the employer must clearly mention the exit date which should be the same as the date on the death certificate. Further, the reason for exit must be 'death in service'. Some employers tend to mention incorrect reasons which becomes an issue in filing the death claim," said Saif from FinRight. Filing a death claim with the EPFO is rarely straightforward—especially when the deceased has worked across multiple organisations. Before a nominee can access the provident fund, pension, or EDLI benefits, all previous PF accounts and EPS service periods must be consolidated. That means filling up Form 13 to transfer past PF balances, along with Form 20 (for EPF withdrawal), Form 10(D) (for pension), and Form 5IF (for EDLI benefits). The process can be cumbersome. Take the case of a deceased employee at Happy Smile Services, a Chennai-based housekeeping contractor. His employer, M. Anuradha, has been helping his family access his benefits. 'The deceased's wife doesn't know Hindi or English. His PF had to be transferred from the Bandra office to the Chennai office, but the documents I sent by post didn't reach the right person. Eventually, I contacted FinRight, and the Mumbai-based startup helped complete the EPF transfer," Anuradha said. The PF withdrawal was processed, but the pension claim hit a roadblock. The employee had worked at three organisations, but one employer failed to deposit EPS contributions—despite him being eligible. 'On special request, that service period will not be considered and pension will be started. Had the person been alive, this relaxation wouldn't have been possible," said a representative from FinRight. Such leniency is rare, though. PF consultant Kunal Kabra of shared a case where a deceased member had a two-month service stint tied to a completely different UAN. 'The nominee is willing to forgo that service period, but the field office is insisting on transferring it, which has delayed the claim," he said. Exempt trusts (companies that manage their own PF funds) can speed up withdrawals—but even then, pension issues may arise. Also read | Plan to withdraw from EPF for marriage, education, or illness? Know the rules Abhilasha Singh from Indore is trying to claim pension benefits after her husband's death. But there's a hitch: his second employer didn't deposit EPS contributions, despite his eligibility. She withdrew the PF after his death, only to discover the EPS issue later. 'Now I'll have to deposit an amount equivalent to EPS balance during second employment to be eligible for pension benefit," Singh said. The bottom line: File your nominations, consolidate old accounts, and don't leave your family guessing.
