Which rules did EPFO ​​change?

EPFO has now divided the PF interest into two parts in Form 13 – taxable part and tax free part. This will now ensure that TDS i.e. tax deduction is done correctly and there will be no error. It will now be easy for PF members to understand how much tax is being deducted from their interest.

PF transfer is now even faster

EPFO has made the process of PF transfer very easy. Now your PF balance will be transferred quickly when you change jobs. Every year about Rs 90,000 crore is transferred. About 1.25 crore people will benefit from this.

UAN can be generated even without Aadhaar

Now in some special cases, companies can generate UAN i.e. Universal Account Number even without Aadhaar. This facility is for those members whose PF trust has been closed or against whom any legal proceedings are going on. Companies will be able to create UAN in bulk with the old member ID and other information.

Security is tight even on UAN without Aadhaar

If someone’s UAN is made without Aadhaar, then that account will remain frozen until Aadhaar is linked. This will prevent any misuse and the safety of PF money will be maintained.

PF transfer claim will now be faster

Earlier, approval was required from both the offices for PF transfer, which caused delay. Now this process will be completed from a single office and your money will reach your new PF account quickly. All these changes of EPFO ​​have been brought for the convenience, safety and transparency of the members so that every work related to PF can be easy and tension-free.

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If UAN is linked with Aadhaar, then EPF members can update their profile with personal information like name, date of birth, gender, nationality, father or mother’s name, marital status, spouse’s name, joining date and leaving date without uploading any documents. No other document will be required for this.

Earlier, members had to get approval from their employer to update their profile, which resulted in an average delay of about 28 days. This change by EPFO ​​will help 7 crore members.

These people will still have to take approval

According to a statement from EPFO, ‘Out of the total 8 lakh requests received by EPFO ​​for correction through employers in FY 2024-25, about 45% of the changes can be updated by the member himself without verification of the employer or approval in EPFO.’ However, if UAN was issued before 1 October 2017, then any update in the profile will require the approval of the employer.

Aadhaar-PAN linking is mandatory

However, members have to link their Aadhaar and PAN with their EPF account for any update or withdrawal. Any mistake between EPFO ​​details and Aadhaar can delay the approval. To overcome such problems, the process may take a few weeks depending on the approval time of the employer and EPFO.

What is UAN?

UAN is a 12 digit number that helps in monitoring the PF account. UAN is required for checking the balance in the PF account and for any other changes. To avail the Employment Linked Incentive (ELI) scheme, UAN activation and linking the bank account with Aadhaar is mandatory. 

How to update EPF profile?

• Visit the portal on the official website of EPF www.epfindia.gov.in. 
• Log in to the member portal by entering details like UAN number, password and captcha. 
• Select the ‘Manage’ option at the top of the menu. 
• Now members will have to choose the option of ‘Modify Basic Details’. 
• Enter your personal details as per Aadhaar card and submit. 
• You can track the profile update process using the ‘Track Request’ option in Lost. 

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The Central Board of Trustees (CBT), chaired by Union Labor Minister Mansukh Mandaviya, approved these amendments in its 237th meeting. Apart from this, the board recommended an interest rate of 8.25% on Employees’ Provident Fund (EPF) deposits for the financial year 2024-25. After the interest rate is officially notified by the central government, the EPFO ​​will deposit the interest rate in the accounts of the subscribers.

Many important changes made in EDLI scheme

After actuarial evaluation of Employees Deposit Linked Insurance Scheme (EDLI Scheme), the Board has approved major amendments in the scheme to provide greater financial security and support to the families of members.

1. Commencement of minimum benefit on death within one year of service

A minimum life insurance benefit of Rs 50,000 will be provided if the EPF member dies without completing one year of continuous service. This amendment is expected to provide more benefits in cases of more than 5 thousand deaths occurring during service every year.

2. Benefit for members deceased while in service after non-contribution period

Earlier, EDLI benefit was denied in such cases as these were treated as deaths outside service. Now, EDLI benefit will be admissible if a member dies within six months of receiving his last contribution, provided the member’s name has not been removed from the rolls. With this amendment, it is estimated that more than fourteen thousand cases of such deaths will get the benefit every year.

3. Consideration of service continuity

Earlier, a gap of one or two days (such as weekends or holidays) between employment in two establishments denied the minimum EDLI benefit of Rs 2.5 lakh and maximum of Rs 7 lakh, as the condition of continuous service of one year was not met. Under the new amendments, a gap of up to two months between two spells of employment will now be considered as continuous service. This will ensure eligibility for a higher amount of EDLI benefit. This change is expected to benefit more than a thousand cases of death in service every year.

These amendments are expected to result in more than 20 thousand cases of death during service every year getting more benefits under EDLI. These reforms are aimed at increasing the social security benefits for the families of EPF members, ensuring better financial security and reducing the hardships of distressed families.

Government’s big decision on EPF interest rates

EPFO has retained the interest rate of 8.25% on Employees’ Provident Fund (EPF) deposits for 2024-25. The Employees’ Provident Fund Organization (EPFO) had marginally increased the interest rate on EPF from 8.15% in 2022-23 to 8.25% for 2023-24 in February 2024. The 8.5% interest rate on EPF deposits for the financial year 2020-21 was decided by the CBT in March 2021. After the decision of the CBT, the interest rate on EPF deposits for 2024-25 will be sent to the Finance Ministry for approval.

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On November 30, 2024, the Central Board of Trustees (CBT) in its decision has changed the rules in 60(2)(b) of EPFO. After its implementation, members will get more interest and settlement will be faster. This information has been given in a report of Economic Times. Let us tell you that this new rule has not been implemented yet. The new rule will come into effect after the government issues a notification. Till then the old rule will remain in force.

What needs to change?

According to the announcement made by EPFO, ‘CBT has approved an important amendment in paragraph 60(2)(b) of EPF Scheme 1952. According to the current rules, interest on settlements done by the 24th of the month is paid till the end of the previous month. Now members will get interest till the date of settlement.’ EPFO ​​believes that this will give more interest to investors. Along with this, cases will also be settled faster.

Currently, settlement is not done from 25th to the end of the month. The reason behind this was to protect the members from loss of interest. But now settlement can be done throughout the month. EPFO ​​has said that this decision shows how efficient, transparent and member-centric the organization is.

How will it be beneficial

Suppose the total balance of an EPF member is Rs 5 lakh. Currently, the interest rate is 8.25 percent. In such a situation, if a person settles on the 23rd of the month, then after the implementation of this rule, he will get interest for 23 days as well. Till now, interest was available only up to one month before the settlement. Due to which EPF members had to suffer losses.

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In such a situation, there is a possibility that the deadline for higher pension application for EPFO ​​EPS members should be extended. Let us understand the reason behind extending the application deadline.

According to the report, instead of being proactive, EPFO ​​has mostly made last minute stop gap arrangements and has not provided any clarity in the most important issues. Along with the past contribution of EPF members, clear information has also not been shared about how the future contribution will be calculated. At the same time, EPS members are being told that any member who wants to apply for higher pension should confirm consent to pay or allow deduction from his EPF fund of an undisclosed amount during the online application process.

In the current situation, the EPS member will have to give consent for the higher deduction without knowing how much will be deducted from his EPF and what will be the approximate amount of higher pension he will get in return. Or what will be the calculation rule that EPFO ​​will use. Apart from this, the confusion related to eligibility persists due to no FAQ being issued by EPFO.

The Supreme Court gave EPFO ​​4 months time till 03 March 2023 to allow EPS members to apply for higher pension. EPFO then came up with an online joint application form for eligible members who were members before 1st September 2014 and continued to be in service on or after 1st September 2014. This form was made available on the EPFO ​​website on 27 February 2023. After this, the deadline for online application has been extended by 2 months to 3 May 2023.

One of the important points of confusion in the Higher Pension application process for eligible EPS members who are in service on or after September 01, 2014 is with regard to the new EPS contribution system. Because, the earlier system has to be changed later. The top court asked the EPFO ​​to stop charging an additional amount of 1.16 per cent on contribution over and above the existing wage limit of Rs 15,000 from employees applying for higher pension and directed the EPFO ​​to put in place a system. However, EPFO ​​has not yet informed the EPS members about this new method or system.

Even if EPFO ​​releases the new system now, EPS members will not have enough time to understand and assess its result, as very little time is left for the May 3 deadline to end. Apart from this, it will not be of any use to those people who have already applied for higher pension. Whereas, the Kerala High Court, in its interim order dated 12 April 2023, has asked the EPFO ​​not to insist on documentary proof, on taking permission proof from the PF commissioner for online joint application. However, EPFO ​​has not given clarity on its implementation.

EPFO should also provide an exit window to EPS members to review and withdraw the application. Especially those people who have already applied without knowing the new contribution system. In such a situation, there is a strong possibility that EPFO ​​may extend the last date of online application for higher pension to May 3, 2023.

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At the same time, preparations are being made to release the outstanding interest amount of some EPF account holders for the financial year 2021-22 soon. EPFO has indicated that interest on EPF deposits will be transferred to members’ accounts in April 2023. Interest rate on EPF amount increased for 2022-23

The Central Board of Trustees of EPFO ​​has increased the interest rates on EPF accounts for the financial year 2022-23 to 8.15 percent, which is 0.05 percent more than the interest rate for the same period last year. Please tell that the interest rate in the financial year 2021-22 was 8.10 percent.

According to the new interest rate of 8.15 percent, the government will give interest to the account holders on the amount deposited in EPF.

EPFO can issue interest amount in April

According to EPFO, usually interest money on EPF accounts is released in the last month of the financial year. EPFO has indicated that the amount of EPF interest can be released in April. At the same time, some EPF account holders could not get the interest amount even for the last financial year 2021-22. It is estimated that he too can be released in April.

Finance Ministry said – there will be no loss of interest amount

Even for the financial year 2021-22, the Finance Ministry has said in November 2022 that there will be no loss of interest amount for the customers of Employees Provident Fund Organization (EPFO) if the interest amount is not transferred to some EPF account holders.

It was told then that the delay in depositing the interest amount for the financial year 2021-22 was due to software upgradation due to the tax changes implemented last year. Due to this, the amount of interest rate sent to the accounts is not visible to the EPF members.

Salary contribution percentage in EPF account

EPFO operates Employees Provident Fund Account (EPF Account) for its members to provide social security after retirement of salaried employees. An employee contributes 12 per cent of his salary on a monthly basis to the EPF account.

Whereas, the employer also contributes 12 per cent for the employee. The entire 12 per cent contribution of the employee is deposited in the EPF account, but in the 12 per cent of the employer, 3.67 per cent contribution is deposited in the EPF account of the employee and the remaining 8.33 per cent is deposited in the Employees’ Pension Scheme (EPS).

All this amount is available on the retirement of the employee. The Central Government gives interest rate on annual basis on the amount deposited on EPF.

Method to know the amount present in the EPF account

EPF account holders can choose several options to know the amount present in their account. Members can know the current account balance by sending a message to Employees’ Provident Fund Organization on mobile number 7738299899 through their registered mobile number.

Apart from this, the amount can be known by giving a missed call on 011-22901406 and logging in through the member passbook by visiting the official website of EPFO ​​www.epfindia.gov.in. Whereas, the balance in the account can also be found from the Umang app.

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The government has announced the interest rate for the financial year 2021-22 for EPF (Employees Provident Fund). During this, EPF members will get 8.1 percent interest. This is 0.40 percent less than the financial year 2020-21. Despite this, it is higher than other instruments with fixed returns.

Many employees may consider increasing their EPF contribution through VPF (Voluntary Provident Fund) given the attractive interest rate of EPF. Doing so will increase your return on savings. Also, your interest earned on contribution to EPF and VPF will be tax-free.

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