New Delhi, December 12, 2024: The Ministry of Labour and Employment is set to revolutionize provident fund (PF) services by enabling direct withdrawals through ATMs by January 2025. The initiative aims to simplify the claim process and reduce human intervention, bringing the Employees' Provident Fund Organisation (EPFO) closer to modern banking standards.

Upgraded IT Infrastructure for Seamless Services

Speaking on the development, Labour Secretary Sumitra Dawra said, “We are upgrading the IT system of our PF provision. Significant improvements have already been achieved, such as faster auto-settlement of claims and the elimination of unnecessary processes.”

The EPFO’s IT system is being enhanced to IT 2.1 version, which will match the robustness of banking systems. This major upgrade is expected to:

Enable PF withdrawals directly through ATMs.

Reduce dependency on manual processes, enhancing ease of use for claimants.

Improve overall efficiency and speed of PF claim settlements.

"Our ambition is to bring EPFO's IT infrastructure to the same level as our banking system. Subscribers, beneficiaries, and insured individuals will benefit greatly from these upgrades," Dawra added.

Expanding Social Security to Gig Workers

In addition to improving PF services, the Labour Ministry is planning to extend social security benefits such as medical coverage and provident funds to gig workers. This move reflects the government's efforts to ensure inclusivity and support for non-traditional workforces.

Impact on Employment and Ease of Living

The upgrades align with the government's broader objective to enhance ease of living. Dawra noted that the unemployment rate in India has decreased to 3%, indicating positive momentum in the labour market.

The new system will evolve over the coming months, with noticeable improvements every two to three months, culminating in the transformative changes slated for January 2025.

This initiative underscores the government’s commitment to modernizing EPFO services and supporting the diverse workforce with better social security measures.