EPFO 3.0

EPFO’s New Rule Brings Big Relief: Interest on PF Claims to Be Paid Until Settlement Date

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EPFO 3.0
New Delhi – In a welcome move for crores of salaried employees across India, the Employees’ Provident Fund Organisation (EPFO) has approved a significant change that will ensure higher interest payouts to EPF members at the time of claim settlement. The amendment is aimed at resolving long-standing complaints about interest losses due to delays in the final settlement process.

According to reports from The Economic Times, the Central Board of Trustees (CBT) has recommended amending paragraph 60(2)(B) of the EPF Scheme, 1952, to streamline the interest payment system and enhance member benefits.

The Problem with the Old Rule

Until now, EPF claims settled by the 24th of any given month were eligible to receive interest only up to the last day of the previous month. In simple terms, if a claim was settled on June 22, the interest would be calculated only up to May 31.

This left a gap of several weeks in which members earned no interest on their PF balance, despite the funds still lying with the EPFO. Understandably, this led to member dissatisfaction and a barrage of complaints across EPFO offices and help desks.

What Has Changed Under the New Rule?

With the proposed amendment to paragraph 60(2)(B), interest will now be paid on the EPF balance up to the actual date of claim settlement—not just the end of the previous month. This means if your claim is settled on June 22, your interest will be credited until June 22, rather than May 31.

This seemingly small change can have a major financial impact, especially for members with large PF balances. It ensures that members do not lose out on interest income due to bureaucratic delays or processing cut-off dates.

Faster Settlements and Fewer Complaints Expected

Apart from enhancing member benefits, the EPFO’s latest move is also aimed at reducing the volume of pending claims. With the 24th-of-the-month settlement cut-off relaxed, officials will now process claims throughout the month, leading to a smoother and more efficient system.

This could also improve the EPFO’s overall efficiency by eliminating procedural bottlenecks and making better use of available resources.

Official Notification Awaited

While the CBT has cleared the amendment, an official notification is still awaited before the rule comes into force. However, experts believe the implementation could begin soon, given the urgency to enhance member satisfaction and ensure timely settlements.

EPF members are advised to keep an eye on official announcements from the EPFO to track the notification and its effective date.

Conclusion

The latest EPFO initiative is a much-needed step towards greater transparency, fairness, and efficiency in India’s social security framework. By ensuring interest is paid until the actual date of claim settlement, the organisation is acknowledging the rightful dues of its members and taking concrete steps to improve service quality.

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Kuldeep Singh Chundawat
Kuldeep Singh Chundawat
My name is Kuldeep Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.