Most of the employees who contributed to EPF have not received the interest money for 2021-22. Meanwhile, EPFO has increased the interest rate for 2022-23 to 8.15 percent. The Central Board of Trustees of EPFO has increased the interest rate of PF by 0.05 percent. However, after the seal of the trustees of EPFO, the government’s approval is yet to be received on the increased interest rate. The Finance Ministry will also review the interest rate fixed for 2022-23 and then after that the way for the interest money to come into the account will be clear. The question is why every time it happens that the interest money is credited late in the EPF account, whereas in PPF i.e. Public Provident Fund, the interest is credited on March 31 every year.
The interest rate on PF for the financial year 2020-21 was fixed in March, but the payment of interest amount to the account holders was delayed. In such a situation, the question arises, why this delay happens and whether the employee is at a loss if the interest money is delayed in the PF account.
EPFO’s answer to the question of delay in interest money
EPFO is the largest social security organization in the world. Despite this, PF account holders do not get their interest money on time. It is not that the interest in the EPF account has been credited with delay for the last few years, but the situation has been the same for the last several years. Despite the interest rates being fixed by the EPFO board, the account holders have got the money very late.
If the interest of the money of 2021-22 has not come in the account of most of the employees. It was decided to pay 8.10 percent interest for 2021-22. However, in response to questions asked on Twitter, EPFO has said that soon the interest amount will start appearing in the employees’ account. At the same time, in 2020-21 also, 8.05 percent interest on PF was fixed in March itself, while EPFO notified it in October and in December 2021, the interest money was deposited in the shareholders’ account. That is, the interest amount was credited after about 9 months.
Reason for delay in interest credit
The biggest reason for delay in payment of interest amount by EPFO is that after the interest rates are fixed, EPFO and Labor Ministry have to take approval from the Finance Ministry. Since EPFO does not have funds to pay interest to its shareholders, it has to borrow money from the Finance Ministry.