The Employees Provident Fund Organization (EPFO) has approved changes in the EPF rules. Under the new rules, members will get interest till claim settlement, which will give them more financial benefit. Apart from this, the settlement process will be expedited.
There is relief news for lakhs of members of the Employees’ Provident Fund Organization (EPFO). EPFO has changed the rules to make the settlement process easier. According to the new rules of EPFO, now the EPF member will get interest till their claim settlement, which will give them more financial benefits and the claim process will also be faster. This change in the rules has been made in the meeting of the Central Board of Trustees held on 30 November 2024.
Interest will be available till settlement
According to the Employees’ Provident Fund Organisation, “The CBT approved significant amendment in paragraph 60(2)(b) of the EPF Scheme, 1952. Under the earlier rules, if the claim was settled by the 24th of the month, interest was payable only till the end of the previous month. Now, members will get the benefit of interest till the date of claim settlement, which will give them greater financial benefit and also speed up the settlement process.”
When will the new rules come into effect?
Let us tell you that no official order has been issued yet to implement the new rules and until any notification comes from the government, the settlement will be done on the old rules only.
What will be the benefits of the new rule
Puneet Gupta, tax partner, EY India, told ET Bureau the benefits that members will get from the proposed rules for EPF claims.
1. Increase in financial benefits: EPF members will get interest for the entire period till claim settlement, resulting in higher returns.
2. Reduction in complaints: By eliminating the difference in interest calculation, members are less likely to face issues related to loss of interest.
3. Speed up settlement: After the new rules come into force, claims can be settled within a month, which will provide relief to the members.
4. Optimized resource utilization: EPFO can process claims more efficiently, leading to better service delivery.
