Retirement fund body EPFO’s trustees, including those representing employers as well as workers, have raised the issue of non-credit of interest on employees’ provident fund (EPF) for 2021-22 even after its ratification in June last year.
The Employees Provident Organisation’s (EPFO) Central Board of Trustees, headed by Union Labour Minister Bhupender Yadav, in March 2022 approved an 8.1 per cent rate of interest, news agency PTI reported.
The Central Board of Trustees is the apex decision-making body of the EPFO.
“About ten days ago, I raised the issue of non-crediting of interest rate of 8.1 per cent for 2021-22 with the EPFO officials. They told me that there is some issue with the system (software) and it would be resolved soon.” Sidhu, who is also an EPFO trustee, stated that this should not happen as the interest rate was decided in March and ratified in June last year,” PTI quoted Hind Mazdoor Sabha general secretary Harbhajan Singh Sidhu as saying.
Also Read: Update For PF Subscribers: Now Apply For Higher Pension Under EPS; Know What Is Joint Option
Another EPFO trustee who represents the Centre of Indian Trade Unions (CITU), A K Padmanabhan, pointed out that there is no explanation for this and he would raise the issue in the next meeting of the Central Board of Trustees.
The queries sent to EPFO officials in this regard did not elicit any response, the report said.
In March last year, the EPFO decided to lower the interest on provident fund deposits for 2021-22 to 8.1 per cent from 8.5 per cent provided in 2020-21.
Reportedly, the 8.1 per cent EPF rate of interest is the lowest since 1977-78, when it stood at 8 per cent.
In another development, EPFO on Monday came out with a procedure to enable subscribers and their employers to jointly apply for higher pension under Employees’ Pension Scheme (EPS). EPFO provided for dealing with the ‘Joint Option Form’ by field offices of the body.
It stated that a facility will be provided for which URL (unique resource location) will be informed shortly. “Once received, the regional PF commissioner shall put adequate notice on the notice board and banners for wider public information.”
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