PF Can Be Withdrawn Directly via ATMs From Next Year: Labour Ministry

The Labour Ministry is enhancing its IT infrastructure to improve services for India’s workforce, with a significant upgrade allowing Employees’ Provident Fund Organisation (EPFO) subscribers to withdraw funds directly from ATMs starting next year. 

Labour Secretary Sumita Dawra announced the initiative on Wednesday, stressing its aim to boost convenience and reduce human intervention in claim settlements.
“We are settling claims quickly and working to simplify the process to improve the ease of living. By January 2025, claimants, beneficiaries, or insured persons will be able to access their claims seamlessly through ATMs,” Dawra stated.

She added that the Ministry is making incremental improvements every few months to enhance user experience.

The EPFO, which boasts over 70 million active contributors, has been central to the government’s efforts to enhance services and improve ease of living for workers.
Dawra also highlighted plans to extend social security benefits to gig and platform workers, describing the project as being in an advanced stage of development. Although she did not specify a timeline, she noted that the benefits could include medical health coverage, provident funds, and financial support in cases of disability.

“A lot of work has been done, and we have outlined a scheme that is now in the finalisation process,” Dawra said. A committee with representatives from various stakeholders has been established to propose a comprehensive framework for providing social security and welfare benefits to gig and platform workers.

The Code on Social Security, 2020, enacted by Parliament, marked the first formal recognition of gig and platform workers in India. It includes provisions to address their social security and welfare needs, laying the foundation for this initiative.

Dawra also noted a significant decline in unemployment rates, which have dropped from 6% in 2017 to 3.2% today. Additionally, she reported that workforce participation is increasing, with the Labour Force Participation Rate and Worker Participation Ratio reaching 58% and continuing to rise.

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