There is very good and relieving news for crores of employed people in the country. The Employees’ Provident Fund Organization (EPFO) has announced some important concessions for its Employees’ Provident Fund (EPF) members regarding the payment of interest on PF claim settlement. The new rules of EPFO will help EPF members to get more interest amounts at the time of PF claim settlement and faster claim settlement. This decision will prove to be a milestone towards prosperity and financial security for the employees.
According to the media report, during the meeting of the Central Board of Trustees (CBT), the CBT approved an important amendment in paragraph 60 (2) (B) of the EPF Scheme, 1952. This amendment is a big step toward bringing transparency and efficiency to the functioning of the EPFO.
Current provisions and changes
As per the current provisions, for claims settled by the 24th of the month, interest was paid only till the end of the previous month. This rule was causing financial loss to many members, as they were not able to get interest for the remaining days of the current month. Now, under the new rule, interest will be paid to the member till the date of settlement. This change will give direct financial benefits to the members and reduce complaints.
According to the news, till now if the claim was not settled by the 24th of the month, then there was further delay in settlement. After this decision, now these claims will be processed throughout the month, which will reduce pending cases, timely settlement, and optimal use of resources. This reflects EPFO’s commitment to efficient, transparent, and member-centric service delivery.
What is the new rule on PF claim settlement
According to the news, after the new provision, interest on the EPF balance will be available till the date of settlement of the EPF claim. Experts say that under the old rule if a claim was settled by the 24th of the month, interest was paid only till the end of the previous month. This resulted in members losing interest for the days between the beginning of the current month and the settlement date.
For example, if your PF claim was settled on June 15, under the old rule you would get interest only till May 31. But now, after the new amendment, you will get interest till the actual settlement date, i.e. June 15. This is a big win for millions of employees who want maximum returns on their PF.
When will the new EPF claim settlement rule come into effect
Experts say that it is important to note that the official notification for the amendment in paragraph 60(2)(B) has not been issued yet. The new rules for EPF claim settlement will come into effect only after the notification is issued by the government.
That is, till then the existing/old rules for EPF interest payment will remain applicable. Members should keep an eye on the official website of EPFO and reliable news sources to stay informed about the date of effect of the new rule.