EPF interest not credited for 2021-22, trustees raise issue (2024)

Trustees of retirement fund body Employees Provident Fund Organisation have raised theraised the issue of non-credit of interest for employees’ provident fund (EPF) for the year 2021-22 even after it was ratified in June 2022.

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The EPFO trustees' body, comprising those representing employers as well as workers and headed by Union Labour Minister Bhupender Yadav, had in March 2022, approved a rate of interest of 8.1% for the year 2021-2022. The same was ratified in June 2022 but the interest has not been credited yet.

Hind Mazdoor Sabha General Secretary Harbhajan Singh Sidhu told PTI that he had raised the matter about 10 days ago. "They told me that there is some issue with the system (software) and it would be resolved soon.” Sidhu, who is also an EPFO trustee, stated that this should not happen as the interest rate was decided in March and ratified in June last year.

Another EPFO trustee who represents the Centre of Indian Trade Unions (CITU), AK Padmanabhan, pointed out that there is no explanation for this and he would raise the issue in the next meeting of the Central Board of Trustees.

Another trustee KE Raghunathan, who represents employers, had also taken cognisance of the issue and raised the matter with the EPFO officials.

”It (crediting of interest rate into subscribers’ account) is now cleared in most cases. In the last two weeks, almost every member has been credited with interest. The balance would be completed this week.” However, the queries sent to EPFO officials in this regard did not elicit any response.

In March last year, the EPFO decided to lower the interest on provident fund deposits for 2021-22 to 8.1 per cent from 8.5 per cent provided in 2020-21.

The 8.1 per cent EPF rate of interest is the lowest since 1977-78, when it stood at 8 per cent.

The Finance Ministry had in October 2022 said that the interest crediting is not visible due to a software upgrade.

“There is no loss of interest for any subscriber. The interest is being credited in 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 change in the tax incidence," the finance ministry said in a tweet.

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(With PTI inputs)