For the financial year 2021-22, the government had reduced the interest rate on PF to 8.10%, which was the lowest level in 43 years. About 6 crore employees of the country come under the ambit of PF.

Understand here how much more interest will be available on PF now

Under the EPFO ​​Act, 12% of the basic salary plus DA of the employee goes to the PF account. So at the same time, the company also contributes 12% of the employee’s basic salary plus DA. Out of the 12% contribution of the company, 3.67% goes to the PF account and the remaining 8.33% goes to the pension scheme. All the money of the same employee’s contribution goes to the PF account.

In such a situation, suppose that till March 31, 2023 (opening balance for the financial year 2023-24), a total of Rs 5 lakh is deposited in your PF account. In such a situation, if you get interest at the rate of 8.10%, then you get 40,500 rupees as interest on 5 lakhs. But now after increasing the interest rate to 8.15%, you will get an interest of Rs 40,750.

Started in 1952 with 3% interest

In 1952, the interest rate on PF was only 3%. However, after that it kept increasing. For the first time in 1972, it reached above 6%. In 1984, it reached above 10% for the first time. The best time for PF holders was from 1989 to 1999.

During this, 12% interest was available on PF. After this the interest rate started declining. Interest rates have never been close to 10% since 1999. It has remained below 9.50% since 2001. It has been 8.50% or less for the last seven years.

The interest rate is decided at the end of the financial year.

The first meeting of the Finance Investment and Audit Committee is held to decide the interest rate in PF. It gives an account of the money accumulated in this financial year. After this the CBT meeting takes place. After the decision of the CBT, the interest rate is applied after the concurrence of the Ministry of Finance. The interest rate is decided at the end of the financial year.

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The interest rate that was fixed for the last financial year i.e. 2021-22 was the lowest in 43 years. Last year, the interest rate on PF was reduced from 8.5 per cent to 8.1 per cent. There was no change in the rate of interest of PF in the financial year 2020-21. Just a year before this, the interest rate was reduced from 8.65 per cent to 8.5 per cent in 2019-20.

In March 2022, the CBDT i.e. Central Board of Trustees had recommended an interest rate of 8.1 per cent for over 6 crore active subscribers of EPFO ​​for the financial year 2021-22, leaving an estimated surplus of Rs 450 crore. According to sources, EPFO ​​can retain the current interest rate of 8.1 per cent. This can be done keeping in mind the potential for higher returns in equity investments.

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By updating your KYC details, you can get many benefits. EPFO members can use the UAN EPFO ​​website to update their EPF KYC details online. Members require UAN (Universal Account Number) to update or change their KYC details on the UAN EPFO ​​portal . Let us also tell you how you can update the KYC details of your EPF account.

What is Universal Account Number?

UAN is a 12-digit specified number, which is given to each member by the Employees’ Provident Fund Organization (EPFO). With this EPFO ​​member can manage his provident fund account. This number is allotted by the Ministry of Employment and Labor, Government of India. Through the number of this UAN, the information of the funds received from all the companies in which you have worked will be collected and displayed at one place.

What is KYC?

Know Your Customer (KYC) is a one-time process which helps in identifying the customers by linking their UAN with their KYC details. To enable seamless online service, employees and employers will have to provide KYC details like Aadhaar, PAN, bank details etc.

How to update KYC details with UAN?

1. Login to your EPF account on the Integrated Member Portal.
2. Select the “KYC” option in the “Manage” section.
3. Select the details (PAN, Bank Account, Aadhaar, etc.) that you want to link with your UAN.
4. Fill in the required fields.
5. Now click on the “Save” button.
6. Your request will appear under “KYC Pending for Approval”.
7. Once the employer approves the details, a message “Digitally approved by employer” will appear.
8. Once UIDAI verifies your details, “Verified by UIDAI” will appear against your Aadhaar.

Benefits of doing KYC details

1. Online withdrawal claim can be processed only after KYC details are linked with UAN or after EPF KYC update.
2. EPF account can be easily transferred with the help of updated KYC.
3. After activation, members receive a monthly SMS informing about their monthly PF.
4. If a member withdraws his PF before 5 years of service, 10% TDS will be levied on the amount when PAN is updated in the EPF account.

How to update bank account details?

1. Go to EPFO ​​portal and login to your EPF account.
2. Enter your bank account number and IFSC code.
3. Your employer should approve the details.
4. After approval the bank account gets updated.

How to update contact details in your EPF account?

1. Go to your EPFO ​​portal and login.
2. In the ‘mailage’ section, click on the contact details option in the drop down menu.
3. Your mobile phone number and email address are already in your EPF account.
4. To update your details, check the box next to ‘Change Mobile Number’ or ‘Change Email ID’ and then click on the ‘Get Authorization Pin’ button.
5. Once you enter the Authorization PIN sent to you through OTP on your mobile number, your mobile phone/e-mail address will be updated in your EPF account. Keep in mind that it may take some time for your contact information to be updated in your EPF account.

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If you are also a pensioner, then this news is very useful for you. Employees’ Provident Fund Organization (EPFO) has recently made a tweet regarding pensioners. It has been said in this tweet that pensioners can now submit life certificate at any time. Which will be valid for 1 year from the date of submission.

Earlier, pensioners had to submit life certificate in the month of November every year. To get pension without interruption, pensioners have to give life certificate every year. This shows whether the pensioner is alive or not.

The validity will be one year, EPFO ​​has informed about this by tweeting on its official Twitter handle. It has been said in the tweet that pensioners of EPS-95 can now submit life certificate at any time. It will be valid for 1 year from the date of submission. That is, now crores of pensioners will be freed from the hassle of submitting life certificates in the month of November itself.

You can submit life certificate here Pensioners can submit their life certificate by visiting the nearest common service center. Apart from this, it can also be deposited in the bank and post office.

You can submit your life certificate even while sitting at home. There is no need to go to the bank or post office for this. According to the Department of Pension and Pensioners’ Welfare, pensioners can submit the Digital Life Certificate using the Doorstep Banking Alliance of 12 public sector banks or the doorstep service of the Department of Posts.

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EPFO Pension: In the meeting to be held on July 29 and 30, major changes in the system of Central Pension Distribution System will be discussed. After getting approval in the meeting, 73 lakh pensioners across the country will get the pension amount on the same date and time.

The post EPFO Pension Rules: Big news! There is going to be a big change in the rules of EPFO pension, check the new rules immediately first appeared on Rightsofemployees.com.