If you work in a government or private sector and have a Provident Fund (PF) deduction every month, this update is important for you.
The Employees Provident Fund Organization (EPFO) is set to introduce UPI-based claim processing, making fund transfers faster and more convenient.
According to Labor and Employment Secretary Sumita Dawra, EPFO will integrate UPI into its system by May 2025. This will benefit 7.5 crore active EPF members, allowing instant transfers to their PF accounts.
How Will the New System Work?
Currently, claims up to ₹1 lakh are automated, but with UPI, they will be processed even faster. Account holders will be able to link their EPFO account with UPI apps like PhonePe, Google Pay, and Paytm.
Additionally, an auto-claim facility will be introduced, ensuring that eligible members receive their funds instantly. At present, PF claims take around three days to process, but with UPI, the money will be transferred within minutes.
Database and Pension System Updates
1) EPFO has created a centralized database, expected to stabilize within 2-3 weeks.
2) 78 lakh pensioners will now be able to receive their pension from any bank (previously, only selected banks were eligible).
3) A centralized pension system has been introduced following RBI’s recommendation.
Employment-Related Schemes and UPI Launch Timeline
1) The Employment Linked Incentive (ELI) scheme budget has been doubled from ₹10,000 crore to ₹20,000 crore, benefiting employed youth, existing employees, and platform workers.
2) Platform workers will also receive free health insurance under the PMJAY scheme.
EPFO, in collaboration with the National Payments Corporation of India (NPCI), has drafted a proposal for UPI integration. After frontend testing, UPI services will be launched by May 2025.
Previously, EPFO considered allowing PF withdrawals through ATMs, but with direct UPI integration, ATMs may no longer be necessary for withdrawals.