The Centre on July 24 accepted the recommendation of the Central Board of Trustees (CBT) of the Employees’ Provident Fund Organisation (EPFO) to increase the interest rate of deposits in Provident Fund (PF) to 8.15%.
The new rate will be applicable for this financial year.
Retirement fund body EPFO on March 28, 2023, had marginally raised the interest rate on employees’ provident fund (EPF) deposits to 8.15 per cent for 2022-23 for its over six crore subscribers.
As per an official order issued on Monday, the EPFO has asked the filed offices for crediting the interest at 8.15 per cent on EPF for 2022-23 into the accounts of members.
Now the EPFO field offices will start the process of crediting the interest to subscribers’ accounts.
In March 2022, theEmployees’ Provident Fund Organisation (EPFO) reduced the interest rate on EPF deposits for 2021-22 to a four-decade low of 8.10 per cent from 8.5 per cent in 2020-21.
This was the lowest since 1977-78, when the EPF interest rate stood at 8 per cent.
Process of applying for higher pension is easy to understand: Labour Minister
On Monday, Rameswar Teli said in Lok Sabha said that the process of applying for a higher pension on the unified portal of EPFO is very simple and easy.
“The process in the unified portal for submission of joint options for higher pension is simple and easy to understand and contains simple requirements as per provisions of Employees’ Provident Fund (EPF) Scheme, 1952, Employees’ Pension Scheme (EPS), 1995 and the judgment of the Supreme Court on November 4, 2022,” said Minister of State for Labour and Employment Rameswar Teli in a written reply to the Lok Sabha.
EPFO adds 16.30 lakh net members in May
Retirement fund body EPFO added 16.30 lakh members on a net basis in May this year, according to payroll data released last week.
“The data indicates that around 8.83 lakh new members enrolled during May, 2023 are highest during the last six months. Among the newly joined members, the age group of 18-25 years constitutes 56.42% of total new members added during the month,” said a statement from the Ministry of Labour and Employment. “Around 11.41 lakh members exited but rejoined EPFO who may have switched their jobs and re-joined the establishments covered under EPFO and opted to transfer their accumulations instead of applying for final settlement thus extending their social security protection,” it added.
“The data reveals that 3,673 establishments have extended social security cover of EPFO (Employees’ Provident Fund Organisation) to their employees by remitting their first ECR during the month,” a labour ministry statement said.
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Updated: 25 Jul 2023, 07:49 AM IST