Want to share with your friends too?

India
16 Nov 2016

Idle EPF accounts will earn interest

Employee Provident Fund

The Labour Ministry has modified the definition of 'inoperative accounts', allowing accounts that have been idle for 36 months or more to still accumulate interest.

Earlier, inoperative accounts did not accrue interest until the individual seeks new employment and transfers the amount to the new EPF account.

Now accounts will be termed inoperative only if the user retires or migrates abroad permanently.

In context

Employee Provident Fund

Introduction

What is the Employee Provident Fund?

Employee Provident Fund (EPF) is a retirement benefit applicable only to salaried employees.

It is a fund to which both the employee and employer contribute 12% of the former's basic salary amount each month, a percentage that is pre-set by the government.

EPF is maintained by EPFO (Employees Provident Fund Organization) which works under the Ministry of Labour and Employment, Government of India.

Online PF withdrawal to start from August

12 Feb 2016

Online PF withdrawal to start from August

EPFO planned to launch a system that would make PF accounts online.

The service, expected to be launched by Aug'16 would reduce paperwork and provide hassle-free services to subscribers.

With the online facility, withdrawals would take only a few hours and the money would be directly transferred to the bank account linked to Aadhar based Universal (portable PF) Account Number.

More than 60% accounts inoperative

Currently, 9.23 crore EPF accounts out of total 15 crore accounts are inoperative. These inoperative accounts have around Rs.44,000 crore deposit in them.

Love India news?

Stay updated with the latest happenings.

Notify Me

16 Nov 2016

Idle EPF accounts will earn interest

The Labour Ministry has modified the definition of 'inoperative accounts', allowing accounts that have been idle for 36 months or more to still accumulate interest.

Earlier, inoperative accounts did not accrue interest until the individual seeks new employment and transfers the amount to the new EPF account.

Now accounts will be termed inoperative only if the user retires or migrates abroad permanently.

Now, interest on provident fund deposits reduced to 8.65%

19 Dec 2016

Now, interest on provident fund deposits reduced to 8.65%

The Employees Provident Fund Organization (EPFO) reduced the rate of interest on provident fund deposits for fiscal year 2017.

The new interest rate will be 8.65% for 2016-17 from the current 8.8%.

The Central Board of Trustees (CBT), EPFO's topmost decision making body reduced the interest rate in line with the falling rate regime.

16 Mar 2017

Govt to allow upto 90% EPF withdrawal to buy house

In a relief to home buyers, the government seeks to amend the Employees' Provident Fund scheme, to allow users to withdraw up to 90% of their EPF savings to put the down payment for buying a house.

Members will also be able to use their EPF to pay EMIs on home loans.

The announcement was made by Union labour minister Bandaru Dattatreya.

Soon, settle EPF claims through mobile phones

11 Apr 2017

Soon, settle EPF claims through mobile phones

Approximately four crore members of the Employee Provident Fund Organization, the retirement fund body, will be able to settle claims such as EPF withdrawals through UMANG, a mobile application.

A senior official said more than 110 regional offices out of 123 field formations, have already been linked to the central server.

Manually, the EPFO receives approximately 1 crore applications for settlement of withdrawals.

28 Apr 2017

Now, self-declarations would replace certificates in EPFO

In its attempt to relax rules, the Employee Provident Fund Organization (EPFO) decided to allow individuals to withdraw money for treating illnesses, funding education and building houses on the basis of a self-declaration.

According to a senior EPFO official, the organization wants to let go of certifications needed for withdrawals.

Recently, the EPFO also allowed subscribers to withdraw 90% of their funds for housing.

Ask NewsBytes
User Image

Next Timeline