EPFO Interest for FY21-22 and FY22-23 Not Yet Credited in Member Accounts
Moneylife Digital Team 08 April 2023
Employees' provident fund organisation (EPFO), which manages over 277.4mn (million) accounts of employees from across the country, has not yet credited the interest for FY21-22 and FY22-23. Usually, the interest on the balance amount in the EPFO account is credited on 31st March every year. However, the interest has not been credited for the past two years, leaving crores of account-holders in panic.
 
When some account-holders asked about the interest, EPFO replied on Twitter that the process of crediting interest for FY21-22 and FY22-23 is ongoing and it will reflect in the accounts soon. "Whenever the interest is credited, it will be paid in full. There will be no loss of interest."
 
 
 
Responding to a query on Twitter about financial loss due to a delay in updating interest in the member's account, EPFO says, "The date on which the interest is entered in the passbook of the member has no actual financial bearing as the interest earned for the year on his monthly running balance is always added to the closing balance of that year and it becomes the opening balance for the next year." 
 
"Further, if a member withdraws his EPF dues before the interest is updated in his passbook, in that case also at the time of his claim, the due interest is calculated and paid from the date it becomes due automatically by the system," EPFO says.
 
The central board of trustees (CBT) administers a contributory provident fund, a pension scheme and an insurance scheme for the workforce engaged in the organised sector in India. The board is assisted by EPFO, consisting of offices at 138 locations nationwide.
 
For FY22-23, the CBT recommended an 8.15% annual rate of interest to be credited on EPF accumulations. The interest rate gets officially notified after approval of the ministry of finance, following which EPFO credits the interest into its subscribers' accounts. 
 
 
Interest rates on EPFO balance have come down to 8.10% in FY21-22, the lowest in the past 10 years. In FY10-11, the interest rate on EPF was 9.50% which has since remained between 8% and 9%. For FY22-23, the CBT has recommended an interest rate of 8.15% on EPF.
 
During January 2023, EPFO added 1.48mn members into its fold. Out of 1.48mn members added during the month, around 777K (thousand) new members have come under the ambit of EPFO for the first time. Among the newly joined members, the highest enrolment is registered in the age group of 18-21 years, with 226K members, followed by the age group of 22-25 years with 206K members. The age groups of 18-25 years constitute 55.52% of the total of new members during the month. This indicates that the majority of the members are first-time job seekers joining the organised sector workforce of the country, EFPO says in a release.
 
The assured fixed return approach of EPFO, announced by CBT every year along with the tax exemptions, makes it an attractive choice for investors, providing them with strong social security in the form of provident fund, pension and insurance schemes.
 
Comments
jagadishkammar82
1 year ago
It's been almost 5 over months and Interest is yet to be credited???????????????
When it will be credited???????
jagadishkammar82
1 year ago
It's been almost 5 over months and Interest is yet to be credited..................???????????????
passanha.nischal
1 year ago
front end has changed..its time to change to back end ... more focus should be shown in resolving peoples query ... thanks to IT , data is managed well but we are far behind in people management in public sector. babugiri still rules
sspfintech
1 year ago
Not showing Interest till date. Also not showing interest on Taxable amount and No TDS cut in last FY. It means interest income cannot be shown in ITR, this year too.
sharma.suraj14
1 year ago
It's been almost 3 months and Interest is yet to be credited.......
sspfintech
Replied to sharma.suraj14 comment 1 year ago
true..
harsh_61
1 year ago
some specific offices of EPFO are the worst managed offices. They do not care what happens to the subscriber and give evasive replies to grievances and query. EPFiGMS is also similar system where if you post your grievance, they send vague and impractical resolutions and when you give feedback, the system merely sends across the same resolution and closes the grievances repeatedly without listening to the feedback. Private employees are the worst served lot and taken for a ride by EPFO. Nobody is there to listen to you.
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