EPFO Interest Rate -Update
Employees’ Provident Fund Organization (EPFO) has decided to reduce the interest on provident fund (PF) deposits from 8.5% in 2020-21 to 8.1% in 2021-22.
About the reduction in interest rate
- The interest rate of 8.1% will be the lowest interest rate since 1977-78 when the figure stood at 8%. This cut in interest will impact five crore subscribers of the provident fund (PF).
- Earlier, EPFO had cut the provident fund (PF) deposits rate to a seven-year low of 8.5% for 2019-20. The interest rate was kept unchanged in the fiscal year 2020-21.
Employees’ Provident Fund Organization (EPFO) is the statutory body founded in 1952. EPFO is under the Ministry of Labour and Employment and is responsible for the regulation, management, and administration of provident funds (PF) in India. EPFO also manages social security agreements (SSA), which are bilateral agreements between India and foreign countries to protect the interests of international workers.
- Central Board of Trustees (CBT) is the top decision-making body of EPFO. CBT is a statutory body established in 1952 under the Employees’ Provident Fund and Miscellaneous Provisions (EPF&MP) Act, 1952.
- The composition of CBT includes Chairman, Vice-Chairman, 5 representatives of Centre, 15 representatives of States, 10 Employees’ representatives, 10 Employers’ representatives.
- Executive Committee of CBT is chosen from the members of CBT. The role of the executive committee is to assist CBT in the discharge of its functions related to administration.
The government of India launched a 12-digit Universal Account Number (UAN) in 2014. UAN is allotted to employees covered by Employees’ Provident Fund Organization (EPFO), to enable Provident Fund (PF) number portability. EPFO generates UAN for each Provident Fund (PF) member. UAN remains the same throughout an employee’s lifetime and does not change between jobs. UAN acts as an umbrella for numerous Member Identification Numbers (Member IDs) allotted to an employee by different organizations. All IDs are linked to UAN.
Category: Economy & Banking Current Affairs - 2022
|View All E-Books: Recent Release|