According to reports, the Employees’ Provident Fund Organization (EPFO) is likely to deposit interest on provident fund deposits for the financial year 2020-21 soon. News18 Hindi said that by the end of this month, more than 6 crore employees will get benefits. The retirement body kept the interest rate on provident fund deposits unchanged at 8.5 per cent for the financial year 2020-21. The decision was taken in view of the high withdrawal and low contribution by the members during the COVID-19 pandemic.
In the wake of the coronavirus outbreak in the country, the EPFO last March reduced the interest rate for 2019-20 to a seven-year low of 8.5 per cent. The interest rate in 2018-19 was 8.65 per cent. EPFO had provided 8.55 per cent interest rate to its subscribers for 2017-18. The interest rate in 2016-17 was 8.65%.
The EPFO has recently allowed its members to withdraw money from the retirement fund as a non-refundable advance, citing COVID-19. In March, 2020, the central government introduced a special provision under the Pradhan Mantri Garib Kalyan Yojana (PMGKY), which allows EPF members to withdraw three months of basic salary and dearness allowance (DA) or 75 per cent of their provident fund money. Will give whichever is less as advance. “To support its customers during the second wave of the COVID-19 pandemic, EPFO has now permitted its members to get second non-refundable COVID-19 advance. The provision of special withdrawal was introduced in March 2020 under the Pradhan Mantri Garib Kalyan Yojana (PMGKY) to meet the financial need of the members during the pandemic.
According to payroll data, net new enrollments with retirement fund body EPFO in February grew by almost 20% to 12.37 lakh in 2020 as compared to the same month. The provisional payroll data of EPFO highlighted an increasing trend with the addition of 12.37 lakh net subscribers during the month of February, the Ministry of Labor and Employment said in a statement. Of the 12.37 lakh net subscribers added during the month of February 2021, around 7.56 lakh were new members.
“During the difficult times of the COVID-19 pandemic, the EPFO is committed to extend support to all its stakeholders,” the ministry said in a statement.
Finance Minister Nirmala Sitharaman announced in the Budget for 2021 that interest on employee contributions over ₹2.5 lakh per year to provident funds will be taxed from April 1. Sitharaman said, “In order to rationalize tax exemption for income earned by high-income employees, it is proposed to limit tax exemption for interest income earned on employees’ contributions to various provident funds to an annual contribution of ₹ 2.5 lakh. ” His budget 2021 speech.
how to check pf balance
1) To check PF balance through SMS
Those EPFO members having a Universal Account Number (UAN) can send “EPFOHO UAN ENG” to 7738299899 from their registered mobile number. Once the SMS is successfully sent, the user will receive a message containing information about your EPF account including your PF account balance. EPFO member has to set your preferred language of communication in the SMS.
2) EPF balance check through missed call
You can also check your EPF balance by giving a missed call to the authorized phone from your registered mobile number. This service is available only if someone has integrated the UAN with your KYC details.
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