The decision was taken in the meeting a week ago

According to the news published in Economic Times, an EPFO official said that this decision was taken in the meeting held a week ago. The officer also said that notification regarding this has not been issued yet. Its notification is expected to be issued in the coming time. It was reported in the news that preparations are being made to disable the non-refundable Covid advance provision. After this, no shareholder will be able to apply under this facility.

EPFO took this decision very late

Experts say that apart from treatment, people used the Covid advance as a form of unnecessary expenditure. He also told that this decision was taken very late by EPFO. This has affected the availability of funds with EPFO. No official confirmation has been made yet in this regard. Zee News does not confirm this. During the pandemic that shook the world in 2020, EPFO had given its members the facility to withdraw advance money from their PF account.

Under this, non-refundable withdrawal facility was given to the extent of three months’ basic pay and dearness allowance or up to 75 percent of the amount deposited in the member’s EPF account, whichever is less. Let us tell you that under EPFO, both the employee and the employer have to contribute 12 percent of the basic salary and dearness allowance. At present, 8.15 percent interest is being given by the government on the amount deposited in EPFO.

The post Big Update For PF Holders! ‘Covid Advance Facility’ has been closed by EPFO first appeared on Rightsofemployees.com.

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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