EPFO: No interest visible on account? Finance Ministry clarifies what's wrong | Read details here

EPFO: The Employees' Provident Fund Organization (EPFO) subscribers won't experience any interest rate losses, according to the Finance Ministry. The reason due to which interest rate crediting for FY22 is taking longer than expected is because of a software update brought on by tax reforms that were put into place last year.

A tweet from former Infosys director Mohandas Pai prompted Wednesday's clarification. Sharing a news report on Twitter on Wednesday, Pai wrote, “Dear EPFO, where is my interest? Why should citizens suffer because of bureaucratic inefficiency? Pl help⁦.”

A little while later, the ministry tweeted that payments were being made inclusive of interest for all outgoing subscribers requesting settlement and for subscribers seeking withdrawal.

"The interest is being credited in the accounts of all EPF subscribers. However, that is not visible in the statements in view of a software upgrade being implemented by EPFO to account for change in the tax incidence,” the ministry said on Wednesday.

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EPF users would receive an interest rate of 8.1% for 2021–2022 on their retirement savings accounts, according to the Union government. Compared to the same month last year, the EPFO attracted 18.23 lakh new customers in July, an increase of 24.48 percent.

In a statement released by the Union Labor Ministry, it is said that out of the total number of new members recruited in July, about 10.58 lakh members have now become eligible for EPFO's social security benefits for the first time. Since April of this year, there has been a growth in the number of new members joining EPFO.

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