6 hrs ago
EPFO Tests UPI Provident Fund Withdrawals as Wage Ceiling Rises
EPFO manages provident fund savings for workers.
It has started testing a way for people to withdraw some of their savings using UPI.
The service was still being tested, and a launch was expected by the end of December.
The proposed service could let people take out up to 75% of their eligible balance, while 25% stays in the account.
People would still need to meet the withdrawal rules.
Separately, the Cabinet raised the wage ceiling used for provident fund coverage from ₹15,000 to ₹25,000.
This change is expected to bring 51 lakh more employees under mandatory coverage.
For some workers, the monthly contribution could increase from ₹1,800 to ₹3,000.
The Employees’ Provident Fund Organisation has begun testing withdrawals through UPI with banks; launch was expected by the end of December.
The planned service would link the UAN portal with subscribers’ UPI accounts and a new app linked to bank accounts.
Subscribers could withdraw up to 75% of their eligible balance, while at least 25% would remain in the account under the stated rules.
The Cabinet raised the wage ceiling from ₹15,000 to ₹25,000, bringing another 51 lakh employees under mandatory provident fund coverage.
At a 12% contribution rate, the monthly deduction on the higher ceiling could rise from ₹1,800 to ₹3,000.
- Who
- The Employees’ Provident Fund Organisation and its subscribers; the Cabinet also raised the wage ceiling.
- What
- EPFO is testing UPI-based provident fund withdrawals, while the wage ceiling for mandatory coverage has been raised.
- Where
- India.
- When
- Testing has begun; a launch was expected by the end of December. The wage ceiling revision follows the previous one in 2014.
- Why
- The proposed UPI service aims to simplify withdrawals; the wage ceiling increase was linked by Union minister Ashwini Vaishnaw to wage growth and the expansion of formal employment.
Easier access
Withdrawal limits
Accessing provident fund savings
Easier access
The proposed UPI integration and app aim to make withdrawals easier by connecting the UAN portal with subscribers’ bank and UPI accounts.
Withdrawal limits
The service is still being tested, and withdrawals would remain subject to eligibility and limits; at least 25% of the balance would remain in the account.
Key facts
- Withdrawal testing
- EPFO has started testing the proposed UPI facility with banks.
- Expected launch
- An official told Moneycontrol the launch was expected by the end of December.
- Proposed withdrawal limit
- Subscribers could withdraw up to 75% of their eligible balance; at least 25% would remain in the account under the stated rules.
- Wage ceiling
- Raised from ₹15,000 to ₹25,000.
- Newly covered employees
- The increase brings another 51 lakh employees under mandatory provident fund coverage.
- Contribution example
- At 12%, the monthly contribution on the ceiling would rise from ₹1,800 to ₹3,000.
- EPFO scale
- Moneycontrol sources put EPFO at about 30 crore subscribers, including around 7.5 crore contributing members, with a fund close to ₹26 lakh crore.
Sources
Related news
EPFO Promotes Official WhatsApp Channel for Member Updates
EPFO Raises Mandatory PF Wage Ceiling To Rs 25,000
Government Raises PF Wage Ceiling to Rs 25,000
Cabinet Raises EPFO Wage Ceiling, Expanding Social Security Coverage
PFRDA Plans Mobile Pension Accounts and New Retirement Products
PFRDA Plans UPI Pension Accounts, Guaranteed Returns and Health Cover
Modi Marks 25 Years as Government Head With Temple Prayers
India Plans Fully Homegrown Smartphone for Market by 2028
SRFTI Students Continue Boycott, Demand Written Safety Assurances
Cabinet Hails Modi’s 25 Years as Head of Government
