You can withdraw PF directly from ATMs starting next year: Labour Secretary
Dec 11, 2024
Synopsis
The Labour Ministry is enhancing its IT systems, enabling EPFO subscribers to withdraw provident funds directly from ATMs by January 2025. This initiative aims to simplify claims and improve ease of living. Plans are also underway to extend social security benefits, including medical coverage and provident funds, to gig workers. India's unemployment rate has decreased to 3.
The Labour Ministry is upgrading its IT systems for enhanced services to India's workforce. EPFO subscribers will be able to withdraw from their provident funds directly from ATMs starting next year, said Labout Secretary Sumita Dawra on Wednesday.
"We are settling claims quickly and are working to make the process easier to improve the ease of living. A claimant, beneficiary, or insured person will be able to access their claims conveniently through ATMs, with minimal human intervention," Dawra said.
"Systems are evolving, and every two to three months, you will notice significant improvements. I believe there will be a major enhancement by January 2025," the Labour Secretary told ANI.
The move is in line with the government's efforts to improve EPFO services and enhance ease of living.
The Employees' Provident Fund Organisation has over 70 million active contributors.
Dawra further said that the plan to extend social security benefits to gig workers was at an advanced stage but did not specify the timeline of the project.
"A lot of work has been done, and we have outlined a scheme that is now in the finalisation process," she said. The benefits could include medical health coverage, provident funds, and financial support in cases of disability.
A committee with various stakeholders has been formed to propose a framework to provide social security and welfare benefits to gig and platform workers.
Gig and platform workers were defined for the first time in the Code on Social Security, 2020, which was enacted by Parliament. The Code includes provisions related to their social security and welfare.
Dawra also said that unemployment has been on a decline.
"In 2017, the unemployment rate was 6 per cent. Today, it has decreased to 3.2 per cent," she said.
"Furthermore, our workforce is growing. The Labour Force Participation Rate is increasing, and the Worker Participation Ratio, which indicates how many people are actually employed, has reached 58 per cent and continues to rise," she added.
(With ANI inputs)
[The Economic Times]
