NE NEWS SERVICE
NEW DELHI, JUNE 9
The Employees’ Provident Fund Organization (EPFO) will likely to credit the interest on provident fund deposits for the financial year 2020-21 soon, according to reports. Over 6 crore employees will get the benefit by the end of next month.
The retirement body kept the interest rate unchanged on the provident fund deposits at 8.5 percent for the financial year 2020-21. The decision was taken in the view of more withdrawals and less contribution by the members during COVID-19 pandemic.
In the wake of coronavirus outbreak in the country, the EPFO had reduced the interest rate to a seven-year low of 8.5 percent for 2019-20 in last March. The interest rate was 8.65 percent in 2018-19. The EPFO had provided 8.55 percent interest rate to its subscribers for 2017-18. The interest rate was 8.65% in 2016-17.
Net new enrolments with retirement fund body EPFO grew by nearly 20 percent to 12.37 lakh in February compared to the same month in 2020, according to the payroll data. The provisional payroll data of EPFO highlighted a growing trend with the addition of 12.37 lakh net subscribers during the month of February, the ministry of labour and employment said in a statement. Of the 12.37 lakh net subscribers added during the month of February 2021, around 7.56 lakh were new members.
“During the difficult time of COVID-19 pandemic, EPFO is committed to provide a helping hand to all its stakeholders,” the ministry said in a statement.
Finance minister Nirmala Sitharaman announced in Budget 2021 that interest on employee contributions to provident fund of over Rs 2.5 lakh per annum would be taxed, starting from 1 April. “In order to rationalise tax exemption for the income earned by high income employees, it is proposed to restrict tax exemption for the interest income earned on the employees’ contribution to various provident funds to the annual contribution of Rs 2.5 lakh,” Sitharaman said in her Budget 2021 speech.
EPFO members can now avail medical advances of up to Rs 1 lakh
Employees’ Provident Fund Organisation (EPFO) is now allowing its members to withdraw an emergency medical advance without documentation in case of emergency hospitalisation due to serious life-threatening illness, including COVID-19.
Earlier, medical advances were given after the estimates were provided by the hospital. However, EPFO notes that sometimes, in case of emergency, it is difficult to get estimates from the hospitals. Therefore, it has been announced that a medical advance of up to Rs 1 lakh approximately can be granted by the competent authority in case of emergency hospitalisation.
The official notification released by EPFO reads: “A lump sum medical advance up to Rs 1 lakh may be granted by the authority competent to grant medical advance by relaxing the formality of estimate from the hospital treating the employee or for depositing the advance with the hospital for starting treatment.”
How to Avail EPFO Emergency Medical Advance
- Visit EPFO’s official website: epfindia.gov.in
- Go to services tab and click on ‘For Employees’
- Click on ‘Member UAN/Online Service (OCS/OTCP)’ under services.
- You will be directed to EPF Unified Portal
- Login using your universal account number (UAN) and password
- Click on Claim (Form-31, 19, 10C & 10D) under online services
- Verify bank account details connected with UAN
- Read all the terms and conditions and accept it
- Then proceed for online claim and click on medical emergency
For more details about eligibility to avail medical advances, EPFO members can check the official circular.
