News of your work: PF account will be automatically transferred on change of job, Centralize IT system gets approval

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  • EPFO Board Meeting Updates; Minimum pension and PF interest may be fixed

New Delhi15 minutes ago

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After changing the job, your PF account will automatically be transferred or merged into the new account. Centralized IT system of PF account was approved in the EPFO ​​board meeting in Delhi on Saturday. Till now this work of transferring the account has to be done manually. For this, there are some paper formalities in the old and new company which have to be completed. Due to these paperwork, many people leave PF money in the old company.

No decision regarding interest on PF
People expected that in this a decision could be taken on the minimum pension and interest on PF under the Employee Pension Scheme (EPS). But no decision was taken in this meeting regarding this. At present, 8.5% annual interest is being given on PF.

The board meeting of EPFO ​​has approved to put up to 5% of the total annual deposits of employees in alternative investments including Infrastructure Investment Trusts (InvITs). The government wants to earn more returns on the deposits of the employees so that they can be given more interest.

Interest on PF is not expected to come down
Pankaj Mathpal, a personal finance expert and founder and CEO of Optima Money Managers, says that the government is currently looking for ways to invest employees’ money in a place that gives higher returns. Apart from this, there are assembly elections in many states in 2022. Due to this, the government would not want to anger 6 crore PF account holders by cutting the PF interest rate for 2021-22.

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