The Finance Ministry explained that the EPF interest rates are currently being credited into the PF accounts of employees. The main reason why anyone can’t see their Interest amount in their EPF statement is that the software is being upgraded. And the ministry further explained that this technical problem does not indicate any loss of interest amount for any employee.
Can’t See EPF Interest Rates On PF Statement
The Finance Ministry explained in a tweet, “there is no loss of interest for any subscriber. The interest is being credited to the accounts of all EPF subscribers. However, that is not visible in the statements in view of a software upgrade being implemented by EPFO to account for the change in the tax incidence”
This tweet was the reply from the Ministry to the query tweeted by Mohandas Pai, who is the chairman of Aarin Capital and an ex-Infosys director. “Dear EPFO, where is my interest? @PMOIndia @narendramodi Sir needs reforms! Why should citizens suffer because of bureaucratic inefficiency? Pl help”, his query reads.
“For all outgoing subscribers seeking settlement and for subscribers seeking withdrawal, the payments are being done inclusive of the interest”, the Finance Ministry further added.
Mr Pai asked in another tweet, “How is payment done to a subscriber retiring in May if interest is not credited for March end? Paid later?”
The government declared a decade-low interest rate on Employee Provident Fund deposits, in June, which was 8.1 per cent for 2021-22. The interest rate of 8.1 per cent was the lowest since 1977-1978 when it got slashed to 8 per cent. “The EPFO has over 65 million members and it managed assets worth Rs 15.7 lakh crore last year.”
“The 8.5 per cent interest rate on EPF deposits for 2020-21 was decided by the Central Board of Trustees (CBT) in March 2021. The CBT is a tripartite body of the EPFO involving government, workers and employers’ representatives and the decision of CBT is binding on EPFO. It is headed by the labour minister.”
Also, last week, “the RBI increased the repo rate by 50 basis points to 5.9 per cent, the fourth-time increase in a row. In the past four subsequent monetary policy reviews since May this year, the RBI’s rate-setting panel has raised 190 basis points in total. The repo rate is the interest rate at which the RBI lends to the commercial bank.