EPFO Update: If you have a PF employee in your family, then good news has arrived. The EPFO has announced a measure to provide relief to EPF members regarding the payment of interest on PF claim settlements. Under the new EPFO rules, PF members will be assisted in obtaining a higher interest amount at the time of EPF claim settlement and will experience faster claim settlement.
This has brought a lot of enthusiasm to the faces of PF employees. According to The Economic Times, the CBT has announced an essential amendment to paragraph 60(2)(B) of the EPF Scheme, 1952, in a meeting. The existing provisions are quite different, which you can easily know.
Know what the provision is now?
According to the provisions of EPFO, for claims settled by the 24th of the month, interest is paid only until the end of the previous month. Additionally, interest must be paid to the member until the date of settlement. This will reduce complaints, along with financial benefits to the PF members. Until now, if the settlement was not completed by the 24th, there was a delay in settling the claim. Following this significant decision, these claims will be processed throughout the month. This is expected to result in a substantial decline in pending cases. Additionally, this will enable timely settlement and maximise the use of resources.
What is the new rule?
According to media reports, after the new rule, interest on the EPF balance will be available until the date of settlement of the EPF claim. According to experts, under the earlier rule, if a claim was settled by the 24th of the month, payment of interest was only until the end of the previous month.
This caused the members to lose interest for the days between the beginning of the current month and the settlement date. Now, after the new amendment, the benefit of interest will be available till the actual settlement date. According to experts, the official notification for the amendment in paragraph 60(2)(B) has not been issued yet. But these can be implemented soon.