Beneficiaries of the Employees’ Provident Fund Organisation (EPFO) can now cherish that the central organisation will soon start processing the interest for 2021-22. Beneficiaries can soon expect the amount reflect in their accounts, the retirement fund body tweeted a while ago. In March this year, the EPFO declared that it will offer an interest rate of 8.1 per cent, the lowest in four decades, for the last financial year.
How is interest calculated?
As per the process, EPF contribution is credited to the account on a monthly basis, and interest is computed every month. The total interest for the year is credited at the end of the financial year. Every year in March, the EPFO’s central board of trustees, which falls under the Union Labour ministry, decides on the rate of interest for the financial year.
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The rate is then ratified by the finance ministry. Once done, the Labour ministry and the EPFO start processing the interest into employees’ accounts.
This year, the Union Finance Ministry said that the delay for FY22 is due to a software upgrade, which is being carried out to account for changes in the tax incidence. The EPFO’s apex decision making-body Central Board of Trustees (CBT) is headed by Union Labour Minister Bhupender Yadav.
How can you check your balance?
1: Beneficiaries must visit the EPFO’s official website – epfindia.gov.in.
2: Go to the ‘Our Services’ tab.
3: On that tab, you have to search and select ‘For Employees’ option.
4: This would open a new page, where subscribers can click on the ‘Member Passbook’ and enter details like the Universal Account Number (UAN) and password.
5: Once the passbook opens, it will reflect the employer’s contribution, the individual’s contribution, and the interest earned.
6: Those who have been employed in more than one organisation will have to check with different IDs, which are mentioned on the salary slips.
Those who find this process complex may send a text message ‘EPFOHO (your) UAN’ to 7738299899 from your registered mobile number. The return message will show the total balance, not the current interest credit.
One may also give a missed call on 011-22901406 or 9966044425 to check their balance. Here too, the caller will not mention the interest earned this financial year, it would mention the total amount.
