EPFO Will Soon Allow PF Withdrawals Via UPI And ATM To Make Process Faster And Simple

On Monday, the Ministry of Labour and Employment announced that the Employees' Provident Fund Organisation (EPFO) will begin processing claims through the Unified Payments Interface (UPI). The EPFO members will soon be able to withdraw their Provident Funds (PF) via UPI and ATMs, by the end of May or June 2025.

The move aims to significantly boost efficiency and reduce transaction time. The labour department approved the National Payments Corporation of India's (NPCI) recommendation, which handles India's retail payments and settlement systems. Sumita Dawra, Secretary in the Ministry of Labour and Employment in an interview with ANI, said, "By May-end or June, members will experience a transformative change in accessing their Provident Funds."

"They will be able to view their PF account balance directly on UPI, instantly withdraw up to Rs. 1 lakh through an automated system, and choose their preferred bank account for transfers, "she said.

PF Withdrawal Options Expanded:

EPFO has also expanded its withdrawal options to include funds for housing, education, and marriage, in addition to the existing sickness provisions. The Employment and Labour Secretary said, "The EPFO has made significant strides in digitalising its processes, integrating over 120 databases to streamline the withdrawal process."

Further she said, "Claim processing time has been dramatically reduced to just 3 days with 95% of claims now automated and plans to further simplify the process underway."

How Fast Will You Get PF Withdrawals?

PF withdrawals via UPI and ATM are currently not available to EPFO members. The claim process currently takes two to three days to finish. However, it is anticipated that the claim process will be finished in a couple of minutes or hours following the implementation of this feature. EPFO withdrawal and claim will become as simple as UPI transactions. It is expected that members will find PF withdrawals more convenient, simple, and effortless with this feature.

Growth in EPFO Membership:

The announcement came at the time when EPFO membership continues to rise rapidly. In January 2025, EPFO added 17.89 lakh net members, an 11.67% year-over-year rise over January 2024, according to provisional payroll statistics issued on March 20, 2025. Additionally, the report showed that net payroll additions increased by 11.48% from December 2024.

57.07% of the 8.23 lakh new subscribers who registered in January aged between 18 and 25, representing a 3.07% increase from the previous year, as per the EPFO data.

The Ministry of Labour and Employment said, "The new subscribers' addition shows year on year growth of 1.87 % from the previous year in January 2024. This growth in new subscribers can be attributed to growing employment opportunities, increased awareness of employee benefits, and EPFO's successful outreach programs."

Furthermore, the ministry added, "The net payroll addition for the age group 18-25 for January 2025 is approximately 7.27 lakh reflecting an increase of 6.19% compared to the previous month of December 2024 and a growth of 8.15% from the previous year in January 2024. This is in consonance with the earlier trend which indicates that most individuals joining the organized workforce are youth, primarily first-time job seekers."

According to the payroll statistics, around 15.03 lakh members left and then rejoined EPFO. The figure shows a considerable year-over-year increase of 23.55% compared to January 2024.

Members who switched jobs and rejoined EPFO-covered enterprises chose to transfer their accumulations instead of applying for final settlement, ensuring long-term financial stability and social security protection.

FAQs

What are new withdrawal options available for EPF members?

EPFO has expanded its withdrawal options to include funds for housing, education, and marriage, in addition to the existing sickness provisions.

 

How much time will the EPF claim process take after the update?

The EPF claim process will be completed in just a few minutes or hours once the new system is implemented, significantly faster than the current two to three days.

 

How much PF money can be withdrawn via UPI?

EPFO members can withdraw up to Rs. 1 lakh through the UPI-based automated system.

When can EPFO members start withdrawing PF via UPI and ATM?

EPFO members will be able to withdraw their Provident Funds through UPI and ATMs by the end of May or June 2025.