Chennai-based Sudarshan Jain was in for a shock when he checked his Employee Provident Fund (EPF) passbook in August this year. Interest on his EPF for the financial year 2023 and 2024 had not been credited. The timeline coincided with his job change, so he was convinced that his account never got transferred from his previous to current employer.
"I enquired with my company and they informed me that the account was transferred successfully. I ran helter skelter for one month trying to figure out whether my job change had impacted interest credit or if there was another reason. On not getting a response from EPFO support, I went to their X (erstwhile Twitter) account to lodge a complaint, only to find out there were several others like me," he said.
Jain is right. Delay in EPF interest payment is a common concern for several subscribers. This issue is not specific to any one financial year and, in fact, recurs year after year. Moreover, changing companies does not impact the interest payment since EPFO systems calculate the interest till date of claim settlement, said Vishwanath B G, associate director, Mercer Wealth India.
A quick glance at EPFO's X account shows the scale of the problem of delays in interest credit. Most complaints are with respect to the credit of interest for the financial year 2023-24 as the EPFO had revised the rate to 8.25%.
In a response to a customer's grievance raised on X, EPFO replied that 93% cases have been already processed since August 2024 for the interest payment for FY 2023-24. A few customers have also complained about not getting interest for FY 22-23, as is the case with Jain.
The concern for most subscribers is that they might be losing the benefit of compounding due to the delays in interest payment.
Bu hikaye Mint Mumbai dergisinin November 11, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Mint Mumbai dergisinin November 11, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
New draft space law ready, may help attract more foreign investment
A fresh draft of India's first dedicated space law is ready, said Pawan Goenka, chairman of nodal space regulator Indian National Space Promotions and Authorization Centre (In-Space), a move that could make foreign investments easier in the nascent sector.
Services sector growth rebounds in Oct
Businesses were able to grow and generate demand despite facing sharp increases in wages and food costs
India weighs steps to steel against Chinese dumping
India's steel imports jumped by a staggering 41.3% in Apr-Sep of FY25 to 4.7 million tonnes
Making a compelling case for first-time tablet buyers
The Apple iPad mini has been upgraded for AI features at a time when buyer interest in tablets is rising again
Soon, a digital, AI-enabled twin of St Peters
A new way to search and other AI-powered marvels in the news this week
Wearables Can Now Help Women Fight Cancer
Wearable devices are the next big leap in the prevention and treatment of breast cancer through early detection and monitoring
AI adoption by law firms may result in a talent crunch
An AI takeover of entry-level work would mean fewer lawyers trained to do what AI cannot
Monetary policy must account for climate risks as well
To begin with, the trade-off between inflation and growth will get much harder to manage
Trump is stuck with the Fed's Powell. He should make peace
The US president-elect's best bet is to let the central bank do its job
Gig worker social security: India should aim for a perfect balance
Gig workers would get an optimal mix of flexibility and protection if India's 2020 social-security code is implemented well