EPFO Interest: Big news for EPFO members. There is a common query about EPFO interest for employees who leave their jobs prematurely, which has been addressed by the Employees’ Provident Fund on their social media platform, X.
If an employee quits at 55, they will receive interest until they turn 58, or for the following three years. For someone leaving at 40, interest will continue until they reach 58, with no further accrual beyond that age.
When does EPFO cease interest payments?
As per the information shared on social media, EPFO provides interest until the age of 58. Presently, an EPF account will earn interest until the age of 58. Notably, if an employee retires at 60, they will receive interest until that age. Conversely, if they retire at 63, interest will continue until that point. However, if someone retires at 55, 58, or 50, interest will only be paid until the age of 58.
Key Features of EPFO 3.0
EPFO is introducing expedited settlement services. In the upcoming system upgrade, subscribers will have the option to withdraw funds from ATMs and utilize UPI for easier access to their accounts, facilitating smoother transfers.
Recently, the central government approved an 8.25% interest rate on EPF and VPF for FY26. Now, EPFO 3.0 provides members with quick and easy access to their funds. Let’s explore how this new system will make life easier for PF subscribers.
The main objective of EPFO 3.0 is to reduce the time taken for PF claims and make services completely digital. According to the Ministry of Labor and Employment, EPFO successfully transferred its entire member database to the Centralized IT-Enabled System (CITES) platform in July. This has eliminated the old system and created a national database for the entire country. This will now allow subscribers to transfer money to their linked bank accounts via UPI instantly.
EPFO 3.0 will offer the following 5 key advantages to its members:
1. Withdrawal of up to 75% from PF via UPI and ATM
– Subscribers can now withdraw between 50% to 75% of their EPF balance through UPI or a UPI-enabled ATM, subject to specific terms and conditions. They will have visibility of their eligible balance that can be transferred to their bank account and securely transfer funds using their UPI PIN. The withdrawn amount can be used digitally or withdrawn as cash from an ATM.
2. Increase in auto-settlement limit to ₹5 lakh
– The auto-settlement limit has been raised by EPFO from ₹1 lakh to ₹5 lakh. This enhancement enables quick processing and crediting of subscribers’ claims related to purposes like medical emergencies, children’s education, marriage, or housing within three days.
3. Introduction of Face Authentication in UMANG App
– Members can now set up or activate their UAN through Face Authentication Technology (FAT) on the UMANG app. They can also instantly access passbooks, rectify inaccurate details, and file claims online conveniently from their residences.
4. Prevention of claim rejection
– In the previous system, members often faced claim rejections due to lack of awareness about the eligible withdrawal amount. However, with EPFO 3.0, subscribers will now be informed upfront about the amount they can withdraw based on their circumstances.
5. Digital handling of online complaints
– In case additional information is needed by the PF office during claim processing, members can now digitally submit their responses online. Previously, there was no provision for providing clarifications online.