According to the Ministry of Finance, the Employees’ Provident Fund Organisation (EPFO) delayed in crediting EPF interest due to software for FY22 and there is no loss of interest for any member.
The Finance Ministry has clarified that there is no loss of rate of interest for subscribers of Employees’ Provident Fund Organisation (EPFO) and the delay in crediting the rate of interest for FY22 is because of software program upgradation being performed as a result of tax tweaks introduced last year.
“There is no loss of interest for any subscriber. EPFO members are unable to view interest credits of 8.1% for 2021-22 in their retirement savings accounts due to “a software upgrade” to ring in a tax on PF savings over Rs.2.5 lakh a year introduced in the Budget 2021-22″, The Finance Ministry mentioned in a late-night time tweet in response to TV Mohandas Pai on Twitter.
Dear EPFO, where is my interest? @PMOIndia @narendramodi Sir need reforms! Why should citizens suffer because of bureaucratic inefficiency? Pl help @DPIITGoI @FinMinIndia @nsitharaman @sanjeevsanyal https://t.co/jLLpkygbrS
— Mohandas Pai (@TVMohandasPai) October 5, 2022
“For all outgoing subscribers seeking settlement and for subscribers seeking withdrawal, the payments are being done inclusive of the interest,” it added.
Earlier, The retirement fund body, Employees Provident Fund Organisation (EPFO) decided to pay an interest rate of 8.1% for 2021-22.
The rate of interest has been slashed for FY21-22 as low as 8.1% from the last year’s 8.5%. This is the lowest rate of interest ever since 1977-78, which was 8 per cent, as per labour ministry.
