This is on the back of strong financial returns for EPFO this year, including its investments in equity, and almost negligible Covid withdrawals, source told ET.
The central board of trustees of EPFO, headed by the labour and employment minister Bhupender Yadav, gave its go ahead to the proposed interest rate at the 235rd board meeting of EPFO on Saturday.
The interest rate would be officially notified after approval from the ministry of finance, following which EPFO would credit the rate of interest into its subscribers’ accounts, in the later part of the coming financial year.
The interest rate of 8.25%, once notified, will be applicable on voluntary provident Fund (VPF) deposits as well. Further, exempted trusts are also bound to credit the interest at the same rate as EPFO to its employees.
The Employees’ Provident Fund is a mandatory contribution for salaried employees in organisations with 20 or more workers. Under the EPF&MP Act, an employee contributes 12% of his wages to the EPF account on a monthly basis and a matching contribution is made by the employer. While the employees’ full contribution is deposited to the EPF account, only 3.67% of the employer share is deposited to the EPF account and the balance 8.33% goes towards the Employees Pension Scheme (EPS).What is EPF
The Employees Provident Fund is a mandated contribution for salaried employees. An employer is also obligated to make a matching contribution to the EPF account. On a monthly basis, an employee contributes 12% of his earnings to his EPF account. The employee’s whole contribution is placed into the EPF account. In the case of the employer, just 3.67 percent is deposited into the EPF account. The remaining 8.33% goes to the Employees Pension Scheme (EPS).
How to check EPF balance
An employee whose EPF account is managed by the EPFO can check the account balance using following four ways:
a) By using Umang app
b) By visiting EPF member e-sewa portal
c) By giving missed call
d) By sending SMS
How to check EPF balance on UMANG app
The subscribers can now easily check their PF balance at home on the UMANG application.
Step 1: Download and install Umang app
Step 2: Register from your mobile number
Step 3: Choose “EPFO” from the options
Step 4: Click “View Passbook.”
Step 5: After entering your UAN, click Get OTP.
Step 6: Select “Login.”
Your passbook and EPF balance will be shown on the screen.
How to check EPF balance using EPFO portal
Go to the employee section of the EPFO website and click on “Member Passbook.” By entering your UAN and password, you can gain access to the PF passbook. Employee and employer contributions, as well as opening and closing balances, will be detailed. The sum of any PF transfers, as well as the amount of PF interest generated, will be shown. The EPF balance can also be viewed with a passbook.
(You can now subscribe to our Economic Times WhatsApp channel)
