EPFO Will Transfer Interest Bonus To 6 Crore Account Holders: Festive Bonus For Salaried Employees

Bringing festive cheers to the salaried class, the most awaited EPF interest, soon seems to be credited into the subscribers account.

EPF Interest Credit Soon

Employees Provident Fund Organisation (EPFO) may soon credit the interest declared for 2020-21 in the accounts of 60 million subscribers. 

It has been over six months now since it is awaiting the approval from the finance ministry.

 This year, the EPFO has declared an interest rate of 8.5% for 2020-21 in March.

Recently, a meeting was held between the two ministries to address some of the queries of the finance ministry on the interest rate declared for the previous fiscal, according to a top official of the labour ministry.

According to him, “It should be happening soon,” referring to the finance ministry’s approval.

Why The Delay?

Basically, the finance ministry had raised issues about the rate of interest being higher compared with that of other government schemes, including public provident fund or small saving schemes, according to another official.

Further adding, “They had raised questions on the reduced surplus with the EPFO on 8.5%. However, EPFO retained that it is in a comfortable position to pay out the interest at 8.5%,”.

In the previous fiscal, EPFO had estimated an income of around Rs 70,300 crore, including Rs 4,000 crore from sale of its equity investments and Rs 65,000 crore from debt.

EPF Benefits

It is noteworthy here that EPF schemes have several benefits including accumulation plus interest upon retirement, resignation, or death along with partial withdrawals for specific expenses like house construction, marriage, illness, higher education, and others. 

Basically, they include monthly benefits for superannuation/ retirement, widow, surviving an accident or natural calamity, disability, and others.

Registration For EPF

Considering the news of interest credit, recently EPFO announced that  (EPFO) members can file their nomination for PF, Pension(EPS) and insurance (EDLI) benefits online.

If your e-nomination will be registered with EPFO then there is no need to send any documents to the employer or ex-employer. 

For further information, you can log in to the official website at epfindia.gov.in.