June 6, 2023: The Employees Pension Fund Organisation (EPFO) on March 28, 2023, recommended an annual interest of 8.15% on provident fund amount for the financial year 2022-23 (FY23). Typically, the interest on the balance amount in the EPFO account is credited on March 31 every year. But, what happens if there is a delay in updating latest interest in the EPF member passbook?
In a latest update, the EPFO has issued clarification on this.
“Updating of the member passbook with interest is an entry process. The date on which the interest is entered in the passbook of the member has no actual financial bearing as the interest earned for the year on his monthly running balances is always added to the closing balance of that year and it becomes the opening balance for the next year,” it said in a tweet.
“Hence, the member does not suffer any financial loss in case there is any delay in updating interest in his passbook. Further, if a member withdraws his EPF dues before the interest is updated in his passbook, in that case also at the time of his claim settlement, the due interest is calculated and paid from the date it becomes due automatically by the system. Hence, there is no financial loss to a member in the mentioned later case also,” it added.
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An alumna of the Indian Institute of Mass Communication, Dhenkanal, Sunita Mishra brings over 16 years of expertise to the fields of legal matters, financial insights, and property market trends. Recognised for her ability to elucidate complex topics, her articles serve as a go-to resource for home buyers navigating intricate subjects. Through her extensive career, she has been associated with esteemed organisations like the Financial Express, Hindustan Times, Network18, All India Radio, and Business Standard.
In addition to her professional accomplishments, Sunita holds an MA degree in Sanskrit, with a specialisation in Indian Philosophy, from Delhi University. Outside of her work schedule, she likes to unwind by practising Yoga, and pursues her passion for travel.
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