Tag: EPFO INTEREST RATE

NEW EPFO RULE: AUTOMATIC PF TRANSFER FOR JOB CHANGERS

Automatic PF Transfer on Job Change With the latest EPFO update, your PF balance now follows you effortlessly. Changing jobs? Your PF moves with you, automatically!

UAN: Your Financial Passport

Your Universal Account Number (UAN) is now more powerful than ever, ensuring all your EPF accounts are unified under a single umbrella for ease of access and transfer.

Benefits of the New System

No more tedious paperwork or waiting periods for PF transfers. Enjoy the freedom of mobility in your career with zero worries about your provident fund.

A Leap Towards Hassle-Free Savings

Ashish Aggarwal of Acube Ventures highlights how this reform is a step forward in empowering employees, making retirement savings secure and seamless.

EPFO’s Contribution Structure

Both you and your employer contribute 12% of your basic monthly salary to your EPF. It’s a partnership towards a secure financial future.

The Growth of EPFO Members

A whopping 16.02 lakh members joined the EPFO family in January 2024 alone. The journey towards a prosperous retirement continues to accelerate!

How UAN Facilitates PF Transfer

From automatic transfer requests to updated PF passbooks, UAN is your one-stop solution for managing your Provident Funds efficiently.

What Is Required for PF Withdrawal Online?

You may need quick access to these funds in situations such as hospitalisation, wedding or education of your child, home renovation, and repairs. Instead of taking a loan, you can withdraw funds from your PF in whole or in part. Remember that you will have to keep UAN handy to initiate the PF withdrawal process.

To withdraw your PF amount using the EPFO portal, you will need to ensure the following:

  • UAN
  • Aadhaar number must be linked and verified with UAN
  • The bank account where you want to receive the amount must be the same as the bank account registered with your Aadhaar
  • In case of any changes or modifications, you can complete the eKYC process and update your details before you submit a claim

How To Withdraw PF Amount

A. Physical Application

Download Composite Claim Form (Aadhaar/ Non- Aadhaar) to withdraw your EPF balance

1. Composite Claim Form (Aadhaar)

  • If your Aadhaar and bank details are linked on the UAN portal and your UAN is active, use the Composite Claim Form (Aadhaar).
  • You can fill and submit the form directly to the EPFO office without requiring attestation from your employer.

2. Composite Claim Form (Non-Aadhaar)

  • If your Aadhaar and bank details are not linked on the UAN portal, opt for the Composite Claim Form (Non-Aadhaar).
  • Complete the form and submit it, along with your employer’s attestation, to the EPFO office

B. Online Application

The EPFO introduced an online withdrawal option, simplifying the entire process and saves time.

  1. Prerequisites

How to Withdraw PF Amount with UAN?

You can easily withdraw your PF online through your UAN by visiting the EPFO e-SEWA portal. Here are the steps you need to follow:

  1. Log in to the portal – Visit the EPFO e-SEWA portal, log in using your UAN and password, and enter the captcha code. In case you have forgotten your password, you can reset it via an OTP sent to your registered mobile number.
  2. Visit the online claims section – When you’ve logged in, you can look for ‘claim (Form-31, 19, 10C & 10D)’ in the ‘online services’ section.
  3. Enter bank account details – Once this section opens, you will be required to enter the correct bank account number (seeded with UAN) as a verification process.
  4. Confirm terms & conditions – Once you have verified your details, you need to confirm the Terms and Conditions stated by EPFO. You can then click on ‘proceed for online claim.’
  1. Select reason for withdrawal – You will find a dropdown menu, from which you would need to choose the reason for withdrawing from your PF account. You will only be shown the options for which you are eligible.
  2. Enter details and upload documents – When you select the reason for withdrawal, you would need to enter your complete address, and you may need to upload your cheque/passbook details if you’ve chosen the option for ‘Advance Claim. You’ll need to accept further ‘Terms and Conditions’ before requesting a one-time password (OTP) for verification.
  3. Get Aadhaar OTP – Once you have confirmed your details and accepted the terms and conditions, you would need to request an OTP, which will be sent to the mobile number registered with your Aadhaar. Upon entering the OTP, your claim application will be submitted.

Once you have submitted your PF claim, you can track your claims status by logging into your member e-SEWA portal account under track claim status. The EPFO officials will match your data in their records with the data submitted in your online claim form. On completing their verification, they will process your claim application, and the amount will be credited to the bank account linked with your UAN.

Steps to Apply for EPF Withdrawal Online on UAN Portal

Applying for PF withdrawal online via the UAN portal is convenient. Follow these steps:

Step 1: Go to the UAN portal.

Step 2: Log in using your UAN and password. Enter the captcha and click on the ‘Sign In’ button.

Step 3: Select the ‘Manage’ tab and select ‘KYC’ to verify your KYC details are verified or not.

Step 4: After KYC details are verified, select ‘Online Services‘ tab and choose ‘Claim (Form-31, 19 10C & 10D)’ from the drop-down menu.

Step 5: After that, enter your bank account number and click on ‘Verify.

Step 6: Click on ‘Yes’ to sign the undertaking certificate.

Step 7: Now, click on ‘Proceed for Online Claim’.

Step 8: In the claim form, select the desired claim, such as full EPF settlement, EPF part withdrawal (loan/advance), or pension withdrawal, under the tab ‘I Want To Apply For’. If the member is ineligible for any service, it won’t appear in the drop-down menu.

Step 9: Next, choose ‘PF Advance (Form 31)’ to withdraw your fund. Provide the purpose of the withdrawal, the required amount, and the employee’s address.

Step 10: Click on the “certificate,” submit your application.

New EPF Withdrawal Rules 2024

Here are ten essential guidelines regarding EPF withdrawal:

  1. Unlike a bank account, you cannot withdraw funds from your EPF account while employed. EPF is designed for long-term retirement savings, and withdrawals are only allowed after retirement.
  2. In the case of emergencies such as medical expenses, home purchase or construction, and higher education, partial withdrawals from EPF accounts are permitted. The withdrawal limits depend on the specific reason, and account holders can apply for partial withdrawals online.
  3. Early retirement is not recognised until the individual reaches the age of 55. However, the EPFO allows a person who is at least 54 years old to withdraw 90% of their EPF savings one year before retirement.
  1. If an individual faces unemployment due to reasons like lockdown or retrenchment before retirement, they can withdraw their EPF corpus.
  2. To withdraw the EPF amount, the person must declare their unemployment.
  3. According to the new rule, the EPFO permits the withdrawal of 75% of the EPF savings after one month of unemployment. The remaining 25% can be transferred to a new EPF account once new employment is secured.
  4. Under the old rule, 100% EPF withdrawal is allowed after two months of unemployment.
  5. EPF corpus withdrawal is tax-exempt under specific conditions. Tax exemption is applicable if an employee has consistently contributed to the EPF account for five years. If there is a gap in contributions for five continuous years, the entire EPF amount becomes taxable income for that financial year.
  1. Tax is deducted at the source when withdrawing the EPF corpus prematurely. However, if the total amount is less than Rs. 50,000, no TDS is applied. It’s important to note that if an employee provides their PAN with the application, the applicable TDS rate is 10%; otherwise, it is 30% plus tax. Form 15H/15G is a declaration form stating that a person’s total income is not taxable, allowing them to avoid TDS.
  2. Employees no longer need to wait for approval from their employer for PF withdrawal. They can apply directly through the EPFO, provided their UAN and Aadhaar are linked, and the employer has given their approval. The status of EPF withdrawal can be checked online.

Delay in claim settlement due to EPFO’s IT crisis

Officers of the Employees’ Provident Fund Organisation (EPFO) — the world’s largest social security organisation with over 277 million accounts and a corpus of around ₹20 lakh crore — alleged that they are under “extreme duress” after EPFO reverted to the manual updation of annual accounts even as it holds them responsible for any delay in claim settlement beyond stipulated 20 days. The background to the issue is the organisation’s IT system, which employees believe is obsolete.

Weeks before the proposed grand celebrations of EPFO’s 71st Foundation Day on November 1, Employees’ Provident Fund Officers’ Association (EPFOA), in a letter to the government said while claims rejection ratio is an “important barometer” to analyse performance , this metric “cannot be brought down without software intervention” as organisation’s current software is working on “GIGO” principle. In information technology (IT) “garbage in, garbage out” (GIGO) means a flawed input will result in a faulty output.

“While we welcome the scrutiny of claim rejection ratios, the monitoring standard should exclude inadmissible claims, which are bound to be rejected. The statute itself states that claims complete in all respects submitted along with the requisite documents shall be settled and the benefit amount paid to the beneficiary within 20 days. Monitoring of incomplete claims as a performance metric is against the provisions of schemes, yet officers are being routinely, mechanically, and unfairly targeted for rejection of invalid claims,” the letter, reviewed by HT, said.

EPFO has been suffering from serious software infrastructure-related issues for past few years, and these have become worse in the past two-three years, the association said. “Our archaic application software which is the backbone for claims settlement process is now so unresponsive that it takes a herculean effort to complete routine tasks,” it wrote. Confirming the letter, EPFOA’s secretary general Saurabh Swami said the revised performance system now stipulates settlement of subscribers’ claims within 20 days of filing the application, failing which officers are held accountable for payment of additional interest. Earlier, a 30-day timeline was stipulated.

The labour ministry and the Central Provident Fund Commissioner (CPFC) did not respond to an email query .

In another letter dated October 3, addressed to CPFC, EPFOA said, “Our current application software on which bulk of our operations are run is of 2008 vintage.” It listed some of the standard software under use —Windows Vista (2008), IOS 3 (now IOS 17 is available), and Android version 1 (now version 14 is available). “We understand that C-DAC [Centre for Development of Advanced Computing] had, sometime in the year 2019 given a comprehensive proposal for system revamp. EPFO paid consultancy charges for procuring the said recommendation. Inexplicably nothing further has been heard of that proposal.”

The letter pointed out that mammoth tasks of annual accounting are being done manually. “Latest in this process of sub-optimal solutions is the process of annual account updation for the year 2022-23, which till last year was updated through system. Now it requires manual certification. We understand that it signifies almost complete collapse of system in EPFO, thereby forcing a revert to manual updation,” it said.

“EPFO is managing social security money of millions of subscribers and any systemic failure could be disastrous,” a senior EPFO official said requesting anonymity.

EPFO issues instruction for scrutiny of details submitted by employees and employers

The Employees Provident Fund Organisation (EPFO) has released fresh details for scrutiny of information and wage details submitted by the employee and employer for higher pension.

In a circular dated 23rd April 2023, the EPFO said that the applications and joint options for higher pension will be examined by the field office. In case the requirements are complete, the wage details submitted by employers will be verified with the data available with the field offices. In case of data mismatch, employees and employers will be given a one-month time to provide complete information.

“Applications/Joint options will be examined by Field. In case, the requirements are complete, the wage details submitted by the employers will be verified with the data available with the field offices,” the EPFO said.

“The cases where FO details and employers’ details match, the dues will be calculated and an order will be passed by APFC/RPFC-II/RPFC-I for depositing/transferring the dues. The cases where there is a mismatch, the same will be informed to the employer and the employee/pensioner by APFC/RPFC-II. They will be given a time of one month to complete the information,” it added.

When application is not approved by the employer

The EPFO said that in case the submitted application form/join option is not approved by the employer, before any rejection, “an opportunity will be given to the employer for providing any additional proof or evidence or correct any mistakes/errors (including those made by employees/pensioners). Such Opportunity will be for a period of one month and under intimation to the employees/pensioners.”

When submitted information is erroneous

The EPFO further said that in cases where the submitted information is not complete or seems erroneous or any information in application/joint option for needs correction request or not found eligible, “APFC/RPFC-II will seek information from the employers under information to employees/pensioners within one month.

If complete information is received, the case will be processed. However, if the complete information is not received then the APFC/RPFC-II/RPFC-I will pass the order on merit, the EPFO said.

Grievance Redressal

Applicants can register any grievance related to higher pension applications on EPFiGMS after submission of the request form and payment of due contributions, if any.

“The registration of such grievances shall be under specified category of higher pension with reference to Supreme Court judgement dated 01.11.2022. All such grievances shall be monitored by the Office in-Charge of Regional Office and Zonal Office,” the EPFO said.

EPF Interest Rate 2023, Withdrawal, Login, Passbook

Current EPF Interest Rate 2022-23

The current EPF interest rate for FY 2022-23 is 8.15%. The following table will give you get an idea of the diversity or stability of EPF interest rates over the years:  

               Financial Year             Annual Interest Rate (%) 
2022-238.15%
2021-22 8.10%
2020-218.50%
2019-208.50%
2018-198.65%
2017-188.55%
2016-178.65%
2015-168.80%
2014-158.75%
2013-148.75%
2012-138.50%
2011-128.25%
2010-119.50%
2005-108.50%
2004-059.50%
2001-049.50%
2000-0112% (April-June), 11% from July 2001

The interest rate on EPF is reviewed annually. EPF interest rate for FY 2022-23 is 8.15%. Once EPFO notifies the interest rate for a financial year and the year ends, interest rate is calculated for the month-wise closing balance and then for the entire year.

The year in which the new interest rates are announced stays valid for the next financial year i.e. from the year starting on 1st April of one year to the year ending on 31st March of the next year. Here are a few important facts to know about EPF Interest Rate:

  • The rate of interest i.e. 8.15% is valid and will be applicable only on EPF deposits made between the months of April 2022 and March 2023.
  • The interest, even though calculated on a monthly basis, is transferred to the Employees’ Provident Fund account only on a yearly basis on 31st March of the applicable financial year.
  • The transferred interest is summed up with the next month i.e. April’s balance and is then again used for calculation of the interest.
  • If the contribution is not made into an EPF account for thirty-six months continuously, the account becomes dormant or inoperative.
  • Interest is offered on inoperative accounts of employees who have not attained the retirement age.
  • Interest is not provided on the amount deposited in inoperative accounts of retired employees.
  • The interest earned on inoperative accounts is taxable as per the member’s slab rate.
  • For contributions made towards the Employees’ Pension Scheme by the employer, the employee shall not receive any interest. However, a pension is paid out of this amount after the age of 58.

EPF Interest Rate Calculation

Contribution Start MonthApril 2022
Interest Rate (p.a)8.15%
Monthly Interest Rate8.15/12 = 0.679%
Employee’s Contribution12% of Rs. 15,000 = Rs. 1,800
Employer’s ContributionRs. 1,800 (8.33% in Pension, 3.67% in EPF)
Employer’s Actual Contribution to EPF account3.67% of Rs. 15,000 = Rs. 550
Total Monthly Contribution in EPF accountRs. 1800 + Rs. 550 = Rs. 2,350

The balance calculation for the next month (May) will be done in the given manner:

  • Balance carried forward from April 2022= Rs. 2,350
  • Interest earned for the month of April 2022 = Rs. 15.95
  • Balance at the end of May 2022 = Rs. 2,350 + Rs. 2,350 = Rs. 4,700

Note: Although interest has been earned in April 2022, it will be credited at the end of the financial year on 31st March 2023.

The employer and employee make equal contributions to the EPF account as shown below.

Contribution byMonthly Percentage Contributed
Employer12%
Employee12% or 10%
Total24%

Key Points about EPF Contribution:

  • 12% Employer’s contribution includes 3.67% EPF and 8.33% EPS
  • 10% EPF share is valid for the organizations where there are 20 or less than 20 employees /organizations with losses incurred more than or equal to the net worth (at the end of financial year) /organizations declared sick by the Board for Industrial and Financial Reconstruction
  • Total contribution made by the employer is distributed as 8.33% towards Employees’ Pension Scheme and 3.67% towards Employees’ Provident Fund.
  • All contributions are updated in the EPF member passbook
  • The contribution made by the employee goes totally towards the provident fund of the employee.
  • Apart from the above-made contributions, an additional 0.5% towards EDLI has to be paid by the employer.
  • Certain administration costs towards EDLI and EPF standing at the rate of 1.1% and 0.01% respectively also have to be incurred by the employer. This means that the employer has to contribute a total of 13.61% of the salary towards this scheme.

Employee’s Contribution towards EPF

In general, the contribution rate for the employee is fixed at 12%. However, the rate is fixed at 10% for the below-mentioned organizations:

  • Organizations or firms employing a maximum of 19 workers
  • Industries declared as sick industries by the BIFR
  • Organizations suffering an annual loss much more as compared to their net value
  • Coir, guar gum, beedi, brick and jute industries
  • Organizations operating under the wage limit of Rs. 6,500

The minimum amount of contribution to be made by the employer is set at a rate of 12% of Rs. 15,000 (although they can voluntarily contribute more). This amount equals Rs. 1,800 per month. It means that both the employer as well as the employee has to contribute Rs. 1,800 each per month towards this scheme. Initially, this amount was set at 12% of Rs. 6,500, which would equal Rs. 780 to be contributed by both the employer and the employee.

  • The contribution from both the parties is deposited into the EPFO (Employees’ Provident Fund Organisation)
  • This is a long-term investment fund for the contributors which helps them continue an independent life after retirement

Follow the process given below for EPF registration:

  1. Visit the Employees’ Provident Fund Organisation (EPFO) website
  2. Go to the section of ‘Establishment Registration’ that opens up a new page with ‘Instruction Manual’. It will explain the process of Employer Registration, followed by registration of DSC [Digital Signature Certificate] of the Employer which is a prerequisite for fresh application submission.
  3. Accept ‘I have read the instruction manual’ tickbox to proceed and fill in the details to register.
  4. An email e-link is sent which is to be activated and a mobile PIN is also sent. You need to upload certain documents to register.
  5. Those who are already registered can log in using their Universal Account Number (UAN).

EPF UAN Activation Online

To avail facilities of EPF online, one has to activate UAN through the EPF member login portal. In order to activate your UAN, follow the steps given below:

Step 1: Visit the member website of EPF i.e. EPF e-SEWA/EPF Members Portal

Step 2: Click on the “Activate UAN” option present in the right corner of the page

Step 3: As the EPF member home dashboard opens up, enter your UAN/member ID along with your Aadhaar number, name, date of birth, and mobile number according to EPFO records

Step 4: Enter the captcha code and get an authorization PIN on your mobile number registered with EPFO

Step 5: Use the One Time Password (OTP) to validate and activate the UAN online

Step 6: Another message will be sent to confirm the activation of the UAN

Step 7: Once UAN is activated, you can log in using it to check the status of the Provident Fund

Steps to Update EPF KYC Online

Step 1: Visit EPF Members Portal and log in using UAN & Password

Step 2: As the new page opens up, under the section of ‘Manage’, click on KYC from the dropdown menu

Step 3: Update the details like name and number of PAN, Aadhar, Bank documents, etc.

Step 4: Save it and it will show as Pending KYC as long as it is verified from the other end

Employee Provident Fund (EPF): What are the new tax rules

“Employee Provident Fund (EPF) is India’s most popular retirement financial planning and investment choice for individual taxpayers. EPF was earlier under the Exempt taxation framework, i.e., EPF was tax-free at:

Investment stage: When a contribution was made, one could claim a deduction under section 80C against the employee’s contribution upto INR 1.5 lakhs and the entire employer’s contribution upto 12% of PF salary was exempt without any ceiling

Accrual stage: When interest is declared on the accumulated balance

Maturity stage: When the amount is withdrawn from the fund subject to meeting exemption criteria

The Indian Government in order to promote the National Pension Scheme and tax High Net-worth Individuals has done away with a few of the above tax benefits by making the following changes according to Preeti Sharma.

Tax rule on EPF contributions

Employee’s contribution to the EPF account is allowed as a deduction under Section 80C but within the overall limit of INR 1.5 lakhs. There is no change in this provision.

Employer’s contribution to the EPF account of an employee is exempt upto 12% of the PF Salary. Effective 1 April 2020, any employer’s contribution to Provident Fund (PF), NPS and superannuation exceeding INR 7.5 lakhs per year is taxable as perquisites in the hands of the employee under the head ‘Income from Salary’.

EPF tax rule on accrual of interest

Effective 1 April 2022, any interest on an employee’s contribution to EPF upto INR 2.5 lakhs per year is tax-free and any interest earned on a contribution over and above INR 2.5 lakhs is taxable in the hands of the employees. The threshold of INR 2.5 lakhs is increased to INR 5 lakhs in case the employer is not contributing towards EPF.

As per the notification issued by the Income Tax department dated 31 August 2021, the Regional Provident Fund Commissioner (RPFC) will maintain the EPF balance of individuals in two separate accounts for taxation purposes. The contribution within the limit of INR 2.5lakhs/5lakhs in one account and the excess contribution along with the interest accrued on it shall be maintained in a separate taxable account. The RPFC shall deduct TDS on such interest paid on the account maintaining taxable contribution.

Further, in addition to the contribution made by the employer in excess of INR 7.5lakhs per year that is taxable as perquisites in the hands of employees, any interest, dividends, etc. earned from such excess contribution will be taxed as well in the hands of the employee.

Rule 3B has been introduced by the Income Tax department to ascertain how interest, dividend, etc. will be calculated on the above contribution. Employers also need to withhold tax on such accruals.

Further, employers also need to provide the details of such accruals and taxes withheld in Form 16 and Form 12BA issued to employees.

Tax rule on withdrawals of EPF

No tax is required to be paid on the contribution amount and accumulated interest in case the accumulated balance in EPF is withdrawn after 5 years of continuous service.

However, in case the accumulated balance is withdrawn prior to the completion of 5 years of continuous service (allowed by the RPFC in case of prescribed circumstances), then the balance and interest won’t be fully exempted from tax. The tax on such withdrawal shall be calculated as follows:

a) Employer’s Contribution and Corresponding Interest

Employer’s contribution and interest on the same is fully taxable in the hands of the employee under the head ‘Income from salary’ in the individual’s Income Tax return.

b) Employee’s Contribution

In cases where deduction under Section 80C is claimed at the time of contributing, the amount of the employee’s contribution shall become taxable as ‘Income from Salary’. In other cases, the amount withdrawn from an employee’s contribution may not be taxable.

c) Interest on Employee’s Contribution

The amount of interest earned on the employee’s contribution to EPF shall be taxable in the hands of the employee as ‘Income from Other Sources’.

The RPFC shall deduct TDS at 10% on the total amount withdrawn (if more than INR 50,000) before the completion of 5 years of continuous service.

Impact and budget expectations

Despite the above changes, EPF still remains the most loved and sought-after retirement planning scheme for the majority of individual taxpayers. The above changes may not affect individuals who are earning a basic salary upto INR 20 lakhs and contributing 12% of their basic salary towards EPF. Most individuals in India fall under this category.

Big Update for PF interest rate fixed at 8.15% for FY 2022-23

EPF interest rate fixed at 8.15% for FY 2022-23 by EPFO: Sources

The Employees Provident Fund Organisation (EPFO) has fixed the interest rate at 8.15% for financial vear 2022-23 as per the sources quoted by news agency PTI. If the expected interest rate is same as reported by the sources, then there is a hike in the EPF account interest rate. Last year, the interest rate for EPF account was 8.10% for FY 2021-22.

Do note that once the interest rate is fixed by the Central Board of Trustees (CBT), then the finance ministry is supposed to notify it for the interest rate to come into effect.

PF/EPF Withdrawal Rules 2023

Employees’ Provident Fund (abbreviated as EPF)  is a popular retirement savings scheme for all employees in India – either on a mandatory or a voluntary basis. It falls under the aegis of the Employees Provident Fund Organisation (EPFO), a statutory body. It periodically reviews the PF withdrawal rules to make the process more seamless and improve the experience of its million+ subscribers. Typically, online PF withdrawal could take up to 3 working days and the offline process could take up to 20 working days. Let us now look at the rules for 2023.

EPF Withdrawal Rules 2023

Planning to withdraw a portion of your PF corpus? Well, here are some basic rules you need to be aware of:

  • You cannot withdraw your PF funds, fully or partially, until the time you are employed.
  • You can withdraw up to 75% of your funds if you are unemployed for at least one month and the remaining balance if you are unemployed for two months or more.
  • If you are planning to withdraw ₹50,000 or more from your corpus within 5 years of opening your EPF account, the withdrawal will attract a TDS of 10% (provided you have a valid PAN card in India) or 30% (if you don’t have a PAN card).
  • You can avoid TDS deduction by producing Form 15H or Form 15G.
  • You could get a loan against your PF savings, provided you have been in continuous service for a specified number of years.
  • You don’t need to withdraw the balance from your old PF account to your new one when you change jobs. The money can be transferred, provided your Universal Account Number (UAN) is active and you have submitted the relevant forms.
  • You can withdraw your full PF balance if you have been unemployed for at least 2 months or if the joining date for your new job is more than 2 months after your last working day at your previous organisation.

Probable Reasons for PF Withdrawal

You can withdraw PF, provided you satisfy some conditions. Here are some reasons for which you can withdraw your PF funds:

1. For Educational Purposes

A PF account holder can withdraw up to 50% of their total contribution to their Employee Provident Fund (only the employee’s contribution). You can use this amount to pay for the education of your children after class 10 as well as for your own higher education.

2. For Medical Treatment

  1. The period of hospitalisation must exceed a month.
  2. You must be admitted to the hospital for any major surgery.
  3. The individual should be on a leave approved by the employer for a disease, such as cancer, tuberculosis, paralysis, leprosy, a heart problem, or mental issues, etc. 

You can withdraw this money at any time during your service period. For this, you do not need to complete a number of years of service in your present organisation. The maximum amount that you can withdraw is your six months’ salary. This amount can be used for medical treatment of self or family.

3. For Repaying Existing Debt

You can withdraw an amount equivalent to 12 times your monthly salary from your EPF to repay your existing home loan. However, you will have to complete 5 years of continuous service in order to be eligible. 

The amount can be used to repay your present home loan or purchase a property or house. In order to avail the loan, the house must be in your name, your spouse’s name, or owned jointly. This benefit cannot be availed if this is not the case.

4. During Unemployment

Any PF account holder can withdraw 75% of the accumulated amount if they have been unemployed for more than a month after relinquishing employment. If the unemployment period exceeds 2 months, the remaining 25% can also be withdrawn.

Some other reasons for withdrawal might be:

  • If the member reached the age of retirement.
  • If a female employee is resigning to get married, or for pregnancy or childbirth.
  •  If the individual is planning to move abroad permanently.
  • Only a year is left before retirement. 

Due to natural calamities or cuts in electricity in the establishment or for investing in Varishtha Pension Bima Yojana.

5. For Marriage

You can opt to withdraw money from your EPF account to meet the necessary expenses for your wedding, wedding of a child, or wedding of a sibling. However, you can avail this benefit if you have completed at least seven years of continuous service. Up to 50% of the amount you have contributed towards your EPF account, and the interest accumulated can be utilised for a maximum of three times.

6. For Renovating Your House

  1. The age of the house must be at least 5 years.
  2. You can withdraw up to 12 months’ basic wage plus dearness allowance or an employee’s share with interest, whichever is lower.
  3. You must have completed 5 years of continuous service.
  4. The house that you wish to renovate must be in your name or your spouse’s name or jointly owned.
  5. You can avail this facility only once in your lifetime.

7. For Construction or Purchase of a House

  1. To opt for this facility, you must have completed at least 5 years of continuous service.
  2. The house or land that you are purchasing must be in your name, your spouse’s name, or both. Any other combination is not permitted.
  3. You can withdraw basic salary plus dearness allowance for up to 24 months.
  4. There should be no legal disputes for the property in question. Further, you must provide proof of registration of the property to avail the benefits.

8. For Specially-Abled Individuals

According to PF withdrawal rules 2023, specially-abled account holders are eligible to withdraw 6 months’ basic salary and dearness allowance or the employee’s share of contribution along with interest, whichever is lower, to pay for their equipment.

Steps for EPF Withdrawal Online

Step 1: Visit the EPFO member portal.

Step 2: Choose the “For Employees” option under the “Our Services” tab.

Step 3: On the new webpage click on the “Member UAN/Online Service (OCS/OTCP)” option under the “Services” tab of the “For Employees” page.

Step 4: This will redirect you to a new webpage. Log in to the portal using your UAN, password, and the Captcha code.

Step 5: Click on the “KYC” option under the “Manage” tab.

Step 6: You will be redirected to a new webpage. Scroll down to the bottom of the page to find the “Digitally Approved KYC” section and check your KYC details. Ensure the details are correct.

Step 7: Click on the “Online Service” tab from the top menu to proceed with the withdrawal if all the KYC details are correct.

Step 8: Click on the “CLAIM (FORM-31, 19 & 10C)” option from the drop down menu.

Step 9: You will be redirected to a new webpage with an automatically generated “ONLINE CLAIM (FORM 31, 19 & 10C)” form.

Step 10: You will be required to enter the Last 4 digits of your registered bank account number and verify the same.

Step 11: After the verification of the bank account, a “Certificate of Undertaking” will be generated. Click “Yes” on the certificate pop-up to proceed.

Step 12: Click on the “Proceed for Online Claim” option when prompted.

Step 13: For online fund withdrawal, select the “PF ADVANCE (FORM – 31)” option from the drop-down menu provided next to the “I want to apply for” option.

Step 14: A reason for claim has to be selected from the drop-down options provided next to the “Purpose for which advance is required” option. The fields provided for the address of the employee and the amount for advance is also required to be filled up.

Step 15: Click on the checkbox at the end of the page and submit your withdrawal application.

Step 16: You might be required to upload certain scanned documents (depends on the nature of withdrawal).

Step 17: Once the employer approves the withdrawal request, the withdrawal amount will be withdrawn from the EPF account and will be deposited to the respective bank account. Once the claim has been settled, you will receive an SMS notification on your registered mobile number.

EPFO pension eligibility rules for mid-job breaks explained

The Employees’ Provident Fund Organization (EPFO) is a scheme for salaried people that offers pension benefits after a specified amount of service. Thus, according EPFO regulations, 12 per cent of an employee’s basic income is deposited in EPFO, of which 8.33 per cent is set aside for the pension account and 3.67 per cent for the Employees’ Provident Fund (EPF).However, what happens if an employee leaves their job or takes a break mid-way? Do they lose out on their pension entitlement?

EPFO rules state that an employee’s job tenure is taken into account, even if they take a break mid-way. In other words, if a person rejoins their job after a gap of a few years, their previous years of service will be added to their current tenure. To avail of the pension scheme of EPF, an employee must have worked for a minimum of 10 years. If an employee changes companies, their Unique Account Number (UAN) remains the same and the duration of their total job tenure is calculated by removing any gaps in between.

Let’s take an example: If an individual works for a company for 7 years and takes a one-year break, followed by another 4 years of work, their total job tenure will be considered as 11 years. In this scenario, the employee will be entitled to EPF pension benefits. Moreover, if a person works for 9.5 years, they are eligible for a 6-month grace period, which is equivalent to 10 years, as per the rules of EPFO.

The EPFO scheme is an important financial instrument for salaried individuals, as it ensures pension benefits after retirement. It is important to note that the job tenure requirement for pension eligibility is a crucial aspect that every EPFO subscriber should be aware of. So, if you are an EPFO subscriber and have taken a break from your job, you can still avail of the pension scheme by ensuring a total job tenure of 10 years or more.

Know about rules, and claim forms for the final settlement of PF account after leaving job

Employees Provident Fund Organisation (EPFO) website suggests accountholders to wait for some time to get a new job and transfer their PF money to a new account with the new employer. In case you fail to get a new job, you should apply for withdrawal before the end of the 36-month period from leaving the last job as no interest will be paid after 36 months and the account will become inoperative.

“You can also wait for some time to get a new job and then you can get your PF Account transferred to the new Account. However, in case of not getting the job, apply for the settlement before 36 months from leaving the last job as no interest will be paid after 36 months and the account will become inoperative,” the EPFO says on its website.

Claim forms for final settlement of PF account

Age below 50 years

In case 10 years of eligible service is completed then you can apply (in certain cases after a waiting period of 2 months) for final settlement of PF and Scheme Certificate from Pension Fund through Composite Claim For (Aadhar) and Composite Claim Form (Non-Aadhar). The EPFO says that withdrawal benefit, in this case, is not permitted since you have more than 10 years of eligible service. Only the scheme certificate will be issued.

In case you have not completed 10 years of eligible service as on the date of leaving: You can apply (in certain cases after a waiting period of 2 months) for final settlement of PF and Withdrawal Benefit/ Scheme Certificate from Pension Fund through Composite Claim For (Aadhar) and Composite Claim Form (Non-Aadhar).

The EPFO says, “You can apply for Withdrawal Benefit or Scheme Certificate through Form 10C for retaining the Pension Fund Membership. Retention of the membership will give advantage of adding any future period of membership under the Fund and attain eligible service of 10 years to get pension. The Family Pension Benefits will also be admissible in case of death of member if before 58 years of age even with less than 10 years of eligible service.”

Age above 50 years but below 58 years

If 10 years of eligible service is completed then you can apply for final settlement and scheme certificate from pension Fund through Composite Claim For (Aadhar) and Composite Claim Form (Non-Aadhar) or Reduced Pension through Form 10D.

EPFO also says that withdrawal benefit, in this case, will not be permitted as you have more than 10 Years of eligible service. Only Scheme Certificate will be issued. Also, if you opt for pension, then the same will be paid at a reduced rate from the date of leaving service or opted date or 50 years age, whichever is later.

“The pension will be calculated as admissible on completion of 58 years and will be reduced by 4% for each year backward,” it says.

If 10 years of eligible service is not completed then you can apply for final settlement and withdrawal benefit/scheme certificate from Pension Fund through Composite Claim For (Aadhar) and Composite Claim Form (Non-Aadhar).

“You can apply for Withdrawal Benefit or Scheme Certificate through Form 10C for retaining the Pension Fund Membership. Retention of the membership will give advantage of adding any future period of membership under the Fund and attain eligible service of 10 years to get pension. The Family Pension Benefits will also be admissible in case of death of member if before 58 years of age even with less than 10 years of eligible service,” EPFO says.

Age above 58 years

If 10 years of eligible service is completed then you can apply for final settlement of PF through Composite Claim For (Aadhar) and Composite Claim Form (Non-Aadhar); and for Pension through Form 10D.

If 10 years of eligible service is not completed that you can apply for final settlement and withdrawal benefit from the pension fund through Composite Claim For (Aadhar) and Composite Claim Form (Non-Aadhar).

When Can You Withdraw EPF?

One may choose to withdraw EPF entirely or partially. 

Complete Withdrawal

EPF can be withdrawn entirely only under the following two circumstances:

  • When an individual retires
  • When an individual is unemployed for more than one month, he/she can withdraw 75% of the total accumulated amount and can withdraw the rest 25% if the unemployment period stretches beyond two months.

Individuals cannot make a complete withdrawal of EPF balance while switching employers if they don’t remain unemployed for two months or more (i.e. the interim period between changing jobs). 

Partial Withdrawal

Partial withdrawal of EPF balance can be made only under certain circumstances. They are explained in the table below.

Sl. No. Particulars of reasons for withdrawalLimit for withdrawalNo. of years of service requiredOther conditions
1Medical purposesLower of below:

i. Six times the monthly basic salary, or

ii. The total employee’s share plus interest,		No criteriaMedical treatment of self, spouse, children, or parents
2MarriageUp to 50% of employee’s share of contribution to EPF7 yearsFor the marriage of self, son/daughter, and brother/sister
3EducationUp to 50% of employee’s share of contribution to EPF7 yearsEither for account holder’s education or child’s education (post matriculation)
4Purchase of land or purchase/construction of a houseFor land – Up to 24 times of monthly basic salary plus dearness allowance.

For house – Up to 36 times of monthly basic salary plus dearness allowance,

The above limits are restricted to the total cost.		5 yearsi. The asset, i.e. land or the house, should be in the employee’s name or jointly with the spouse.

ii. It can be withdrawn just once for this purpose during the entire service.

iii. The construction should begin within 6 months and must be completed within 12 months from the last withdrawn instalment.
5Home loan repaymentLeast of below: 

i. Up to 36 times of monthly basic salary plus dearness allowance, or

ii. Total corpus consisting of employer and employee’s contribution with interest, or

iii. Total outstanding principal and interest on housing loan		10 yearsi. The property should be registered in the name of the employee or spouse or jointly with the spouse.

ii. Withdrawal permitted subject to furnishing of requisite documents as stated by the EPFO relating to the housing loan availed.

iii. The accumulation in the member’s PF account (or together with the spouse), including the interest, has to be more than Rs 20,000.
6House renovationLeast of the below:

i. Up to 12 times the monthly wages and dearness allowance, or

ii. Employees contribution with interest, or Total cost.		5 years i. The property should be registered in the name of the employee or spouse or jointly held with the spouse

ii. The facility can be availed twice:
a. After 5 years of the completion of the house,
b. After the 10 years of the completion of the house
7Partial withdrawal before retirementUp to 90% of accumulated balance with interestOnce the employee reaches 58 years and withdrawal should be before one year of retirement/superannuation (retirement fund for employees by the company)

Here, it would be relevant to mention that the Employees’ Provident Fund Organisation has allocated UAN, i.e. the Universal Account Number compulsory for all the employees covered under the PF Act. The UAN would be linked to the employee’s EPF account. The UAN remains portable throughout an employee’s lifetime, and there is no need to apply for EPF transfer at the time of changing jobs.

Steps to Apply For EPF Withdrawal Online on UAN Portal

Step 1: Visit the UAN portal.

Step 2: Log in with your UAN and password. Enter the captcha and click on the ‘Sign In’ button.

Step 3: Click on the ‘Manage’ tab and select ‘KYC’ to check whether your KYC details such as Aadhaar, PAN and bank details are verified or not.

Step 4: Once the KYC details are verified, go to the ‘Online Services’ tab and select the option ‘Claim (Form-31, 19 10C & 10D)’ from the drop-down menu.

Step 5: The following screen will display the member details, KYC details and other service details. Enter your bank account number and click on ‘Verify’.

Step 6: Click on ‘Yes’ to sign the certificate of the undertaking and then proceed.

Step 7: Now, click on ‘Proceed for Online Claim’.

Step 8: In the claim form, select the claim you require, i.e. full EPF settlement, EPF part withdrawal (loan/advance) or pension withdrawal, under the tab ‘I Want To Apply For’. If the member is not eligible for any of the services like PF withdrawal or pension withdrawal due to the service criteria, that option will not be shown in the drop-down menu.

Step 9: Then, select ‘PF Advance (Form 31)’ to withdraw your fund. Further, provide the purpose of such advance, the amount required and the employee’s address.

Step 10: Click on the certificate and submit your application. You may be asked to submit scanned documents for the purpose you have filled the form. The employer will have to approve the withdrawal request, and then only you will receive money in your bank account. It usually takes 15-20 days to get the money credited to the bank account.

PF Customer Care Numbers

PF customer care/helpline number – 1800118005

PF missed call number for getting to know EPF details –  9966044425

PF toll-free number – 1800118005

PF balance enquiry number – SMS “EPFOHO UAN” to 7738299899

PF email – employeefeedback@epfindia.gov.in

PF Updates
The EPFO gives an interest rate of 8.1% to subscribers of the Employee Provident Fund (EPF) for 2022-23. It was the lowest interest rate since 1977-78, when the EPF interest rate was 8%.

Starting FY 21-22, interest on employee’s contribution to an EPF account above Rs 2.5 lakh during the financial year is taxable in the hands of the employee. This interest is also subject to TDS under section 194A.

Good News for If your monthly BasicSalary is more than Rs 15000 then the way is clear for you to get more pension

Employees Provident Fund Organisation (EPFO) has issued a circular on December 29, 2022, to comply with the Supreme Court’s direction on higher pension for eligible employees. The circular issued lays down the eligibility conditions for employees to get higher pension and how they can apply for it online.

Who is eligible to receive higher pension as per EPFO?

As per the circular, only those employees are eligible who contributed to higher wages as mandated under the Employees’ Provident Fund (EPF) Scheme and have exercised their option for higher pension prior to their retirement but their request was explicitly denied by the EPFO.

Hence, the following pensioners can apply for higher pension:
a) The pensioners who as employees had contributed on salary exceeding the then prevalent wage ceiling of Rs 5,000 or Rs 6,500; and

b) Exercised joint option under the Employees’ Pension Scheme (EPS) of the pre-amendment scheme while being members of EPS-95, and
c) Their exercise of such option was declined by the EPFO.

Who are not eligible for a higher pension from EPFO?

The circular has explicitly clarified that certain employees will not be eligible for higher pension after the Supreme Court order dated November 4, 2022:

  • The employees who had retired prior to September 1, 2014, without exercising any option under paragraph 11(3) of the pre-amendment scheme have already exited from the membership thereof. (Therefore) They would not be entitled to the benefit of this judgement.
  • The employees who have retired before September 1, 2014, upon exercising option under paragraph 11(3) of the 1995 scheme shall be covered by the provisions of paragraph 11(3) of the pension scheme as it stood prior to the amendment of 2014.

How eligible pensioners can apply for higher pension
The eligible pensioners are required to visit their concerned regional EPFO office along with a duly-filled-in application form and specified documents to apply for a higher pension.

The process of applying for a higher pension at the regional EPFO office is as follows:
A) The request will be made in such form and manner as may be specified by the commissioner
B) The application form for validation will contain the disclaimer as ordered in the aforesaid government notification
C) In case of share requiring adjustment from provident fund to pension fund and if any, re-deposit to the fund, the explicit consent of the pensioner will be given in the application form.

D) In case of transfer of funds from exempted provident fund trust to pension fund of EPFO, an undertaking of the trustee shall be submitted. The undertaking shall be to the effect that due contribution along with interest-upto the date of payment, will be deposited within the specified period.

Further circulars will be issued in regard with how required amount will be deposited for higher pension, says the circular dated December 29, 2022.

Documents required to apply for higher pension

A pensioner is required to submit the following documents for evidence and further processing:
a) Proof of joint option under Para 26(6) of the EPF scheme duly verified by the employer; and
b) Proof of joint option under the proviso to erstwhile Para 11(3) duly verified by the employer; and
c) Proof of remittance in provident fund account on higher wages exceeding the prevalent wage ceiling of Rs 5,000/Rs 6,500; and
d) Proof of remittance in pension fund on higher wages exceeding the prevalent wage ceiling of Rs 5,000/Rs 6,500, if any, and
e) Written refusal of APFC or any other higher authority of EPFO to such request/remittance.

What will happen once the application form is submitted
According to the circular, once the eligible pensioner submits the application form, the EPFO authority i.e., the Regional PF commissioner will deal with it as follows:

  • Each application will be registered and digitally logged. The receipt number will be provided to the applicant.
  • The application will land into employer’s login whose verification with e-sign will be essential for further processing.
  • RPFC will cause each application to be converted into e-file, as far as, possible.
  • The concerned dealing assistant will examine the papers including the note on receipt of due amount in the pension fund, and mark the case to the section supervisor/account officer.
  • The concerned SS/AO will mark out any discrepancies and send it with the rule position to AFPC/RPFC-II who after due examination will put the case to Officer-in charge of Regional Office.
  • The Officer in-charge shall examine each case of pension on higher salary and dispose it by passing a speaking order that shall be intimated to the applicant through e-mail/post. Efforts will be made to intimate them through telephone/SMS.

If an applicant has any grievance, then a complaint can be raised on EPFiGMS after submission of his request form and payment of due contribution, if any.

If you also work in the private sector and PF is getting deducted, then this good news is for you

The EPS-95 National Agitation Committee has given 15 days notice to the labour ministry for increasing the minimum monthly pension to Rs 7,500 from the existing Rs 1,000 and threatened a nationwide stir if the demand is not met.

The Employees Pension Scheme 1995 or EPS-95 is run by the retirement fund body EPFO, which covers over six crore subscribers and over 75 lakh pensioner beneficiaries.

In a letter to Union Labour Minister Bhupender Yadav on Monday, the committee said there is an increase in the deaths of EPS-95 pensioners due to very meagre pension amount and lack of medical facilities.

It threatened a nationwide agitation, including blocking rail and roadways and a collective fast onto death if the minimum pension is not hiked within 15 days.

The committee has demanded the enhancement of minimum pension from Rs 1,000 to Rs 7,500 along with Dearness Allowance declared at regular intervals.

 has also sought payment of pension on actual salary as per the Supreme Court’s verdicts dated October 4, 2016 and November 4, 2022.

The apex court had earlier in November directed the government to give the option for contributing to the EPS-95 scheme on higher salaries. The present threshold for pensionable salary is Rs 15,000 per month.

The committee also demanded the coverage of EPS-95 to be extended to all other retired employees who have not been included in the scheme, by making them ex post facto members.

It submitted that the enhancement in minimum pension is as per the recommendations of the Koshiyari Committee in 2012-2013.

(With inputs from PTI)

Key amendments made in EPS Scheme so far

The Central Government had launched Employees’ Pension Scheme, 1995 in exercise of the powers conferred by Section 6A of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952).  The EPS’95 scheme applies to all the employees of factories and other establishments to which the Employees Provident Funds and Miscellaneous Provisions Act, 1952 applies. Employee Pension Scheme (EPS) came into force on 16th November 1995.

Key Amendments made from time to time:

The Employees Provident Fund Organisation (EPFO) has over the period of time, modified / updated / issues many of its policies which members have to follow:

 

1)     Increase in wage ceiling from Rs. 6500/- to Rs.15000 per month from 01.09.2014.

 

2)     Provision of a minimum pension of Rs. 1000 per month to the pensioners under EPS, 1995 from 01.09.2014 by providing additional budgetary support wherever the pension was falling short of Rs.1000 as per pre-defined formula for calculation of pension.

 

3)     Restoration of normal pension after completion of fifteen years from the date of such commutation, in respect of those members who availed the benefit of commutation of pension under the erstwhile paragraph 12A of the EPS, 1995, on or before 25.09.2008 vide notification G.S.R.132(E) dated 20.02.2020.

 

4)     An individual who joined the Employees’ Provident Fund (EPF) scheme, after September 1, 2014, cannot open an Employees’ Pension Scheme (EPS) account if his/her monthly salary exceeds Rs 15,000.

 

5)     As per the current rules of EPF scheme, an employee contributes 12% of his monthly salary to the EPF scheme and an employer matches this contribution.

 

6)     As per the current rules of EPF scheme, an employee contributes 12% of his monthly salary to the EPF scheme and an employer matches this contribution.

 

7)     Out of the total 24% contribution (Employee’s 12% + Employer’s 12%), employee’s 12% and employer’s 3.67% goes into the EPF account and the balance 8.67% goes into the EPS account.

 

8)     The insurance benefit under the EDLI has been increased by 20% in addition to the existing admissible benefits.

 

9)     The retirement body increased the maximum assurance benefit under the Employees’ Deposit Linked Insurance (EDLI) scheme to Rs 7 lakh from Rs 6 lakh. “Enhanced social security is sought to be provided to the workers without any additional cost to the employer.

 

10)  EPFO has updated many of its schemes:

·  These include PF-Aadhaar linking,

·  maintenance of two PF accounts for some employees,

· rise in insurance benefit under EDLI scheme and

· adding a nominee to the employee’s PF account among others.

Disclaimer:  Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.

EPFO Reduces Interest Rates On Deposits

The two-day meeting of the Central Board of Trustees (CBT) of Employees’ Provident Fund Organization (EPFO) began in Guwahati on Friday. A major decision has been taken on Saturday after a thorough deliberation in the meeting. The interest rate on deposits in EPF has been changed and it has been reduced from 8.5 to 8.1 percent.

EPFO: More Than 6.5 Crore People Are Waiting For This Benefit From EPFO

Private and government employees are going to get gifts before Holi next month. The Board of Employees’ Provident Fund Organization’s (EPFO’s) CBT Board has a meeting on March 12 in Guwahati. In the meeting, the interest rates for the current financial year of EPFO ​​are to be discussed. The Central Board of Trustees (CBT) will decide the interest for the current financial year in the meeting and then submit its recommendations to the Finance Ministry. If sources are to be believed, it can be agreed to pay 8.5% interest in the current financial year as well. At the same time, some members believe that more interest can also be discussed.

Interest rate may remain stable

The current financial year has been difficult for the EPFO. Despite this, EPFO ​​can sell part of its equity investment to pay 8.5% interest. Therefore, due to lack of options, bond investment was less than expected and capital investment could not be done. EPFO invests 15% in equity and the rest in debt. In such a situation, paying the current interest will also be a challenge. The Finance Investment and Audit Committee of EPFO ​​has sent its recommendations to the CBT. Now the final decision on the interest rate will be taken in the March meeting.

8.5% interest paid in FY 20-21

EPFO had given 8.5 percent interest to its subscribers in the financial year 2020-21. Now the eyes of the salaried class are on the meeting to be held on March 12. In this, the interest rate for the current financial year (FY 22) is to be announced. According to the Union Labour Minister, the proposal for the decision of interest rates is also listed in this important meeting.

No reduction in interest rates

Interest rate 8.75% in FY 14 and FY 15

Interest rate 8.80% in FY 16

Interest rate 8.65% in FY 17

Interest rate 8.55% in FY 18

Interest rate 8.65% in FY 19

Interest rate 8.5% in FY 20

Interest rate 8.5% in FY 21

EPFO- If you are a member of Employees’ Provident Fund Organization (EPFO), then you are going to Benefit Today

There is going to be great news for the employed people in this one or two days. PF account holders can get 8.5 percent interest money this week.

If you are a member of Employees’ Provident Fund Organization (EPFO), then you are going to benefit. For the fiscal year 2020-21, 8.5 percent interest has been approved. PF money can be transferred at the end of July. That is, till July 31, PF account holders are expecting that money will come in their PF account.

Registered Mobile Number से 011-22901406 पर मिस्ड कॉल देकर सेकंड्स में जानें अपना पीएफ बैलेंस

Read more at:

Removed mandatory requirement of furnishing GSTR 9C from CA

CA JAYPRAKASH PANDEY

EPFO retains interest rate at 8.5 per cent for 2020-21

The Central Board of the EPFO today recommended 8.5 per cent annual rate of interest for the financial year 2020-21. The decision was taken in the 228th meeting of Central Board of Trustees, EPF which was held on Thursday in Srinagar, Jammu & Kashmir under the chairmanship of Labour Minister Santosh Kumar Gangwar. 

The Minister informed that the interest rate would be officially notified in the government gazette following which EPFO would credit the rate of interest into the subscribers’ accounts. Since the year 2014 EPFO has consistently generated returns not less than 8.5 per cent. EPFO over the years has been able to distribute higher income to its members, through various economic cycles with minimal credit risk. Considering the high credit profile of the EPFO investment, the interest rate of EPF is considerably higher than other comparable investment avenues available for subscribers.

EPFO has extended its provident fund, pension and insurance benefits to all employees of existing establishments covered under the erstwhile JK PF Act as well as the employees of newly covered establishments. EPFO has set up Regional Offices at Srinagar, Jammu and facilitation center at Leh.

The social security coverage of establishments under EPF in Jammu and Kashmir and Ladakh has increased by 38 per cent, from 3458 on 31st October 2019 to 4754 on 31st January 2021. The benefits of social security schemes of EPFO in these UTs have been extended to 2.11 lakh subscribers by January this year as compared to 1.29 lakh in October 2019, registering a remarkable growth of 63 per cent.

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