For the millions of salaried employees EPF or Employees’ Provident Fund is a wealth accumulation long-term savings scheme. This scheme allows employees to save a little bit portion of their salary to accumulate in the PF account on a monthly basis. Furthermore, employees also receive an interest amount at the current rate of 8.1 per cent on the accumulated PF amount. But the majority of them have raised a query about their interest amount not being credited to their EPF account. This can be confirmed after checking the passbook at the EPFO portal.
What Happens if Your EPF Account Passbook is Not Updated, Would You Lose Money?
The common doubt among the employees is that they will lose their money if the passbook is not updated on time.
“98% of contributing businesses or establishments have updated their employee provident fund (EPF) member accounts with the most recent interest credit through March 6, 2023,” said Minister of State for Labour and Employment Rameshwar Teli.
“This (interest crediting) is an ongoing process, which has been taken up in a scheduled manner post development of software and by March 6, 2023, the process has been completed in respect of 98 per cent of contributory establishments,” he further stated.
In brief, according to him, “account updation with interest credit is a thorough activity that necessitates an examination of each and every transaction done in relation to each and every member’s account, making the entire procedure exceedingly time-consuming.”
So, as per him 98% of the employees’ have got their interest amount credited as of March 6, 2023. He also claimed that this process of transfer is regular, scheduled and automated. The functioning of this process is separate from natural claim settlements.
Also read:Aadhaar Update Process is Free Till June 14, Here’re the Steps to Update
“Updating a member’s passbook with interest is only an entry process; the date on which the interest is recorded has no real financial impact on the amount of interest earned for the year,” as per the Minister.