Higher Interest On Your PF Balance? Govt's New EPFO Rule Is A Bonus - Details

The Central Board of Trustees has made significant amendments to the EPF Scheme, 1952. The decision was made by Dr. Mansukh Mandaviya, Union Minister for Labour & Employment and Youth Affairs & Sports presided at the 236th meeting of Central Board of Trustees (CBT), EPF in New Delhi.

EPF Scheme: What Are The Amendments

CBT approved a significant amendment to paragraph 60(2)(b) of the EPF Scheme, 1952. As per existing provisions, for the claim settled till 24th of the month, interest is paid only upto the end of the preceding month. Now, the interest will be paid to the member upto the date of settlement. This will result in financial benefit to the members and reduce the grievances.

EPF Scheme: What Is Happening Till Now

Till now, interest-bearing claims are not processed between the 25th and the end of each month to avoid loss of interest to the members. After this decision, these claims will be processed for the entire month leading to reduced pendency, timely settlement and optimized utilization of resources. It reflects EPFO ’s commitment to efficient, transparent, and member-focused service delivery.

the CBT recommended EPFO Amnesty Scheme 2024 to the Central Government. The initiative is designed to encourage employers to voluntarily disclose and rectify past non-compliance or under-compliance without facing penalties or legal repercussions.

Now, a simple online declaration from employers will be sufficient to avail of the scheme benefits. By providing a limited window for voluntary compliance, the scheme aims to extend social security benefits to more employees, rebuild trust with employers, and promote the formalisation of the workforce. The scheme was welcomed unanimously by the CBT, the release added.

This amnesty scheme will support the implementation of Employment Linked Incentive Scheme, announced in Union Budget 2024-25, to foster employment generation and incentivize formalization of jobs in the economy.

It is expected that several small establishments (under the MSME sector or otherwise) may wish to avail of the benefits under the ELI Scheme but would be worried in enrolling under EPFO. This Amnesty Scheme would provide the confidence to such employers to enrol without any fear or additional financial burden.