February 02, 2023 09:39 pm | Updated February 03, 2023 12:18 AM IST – New Delhi
The EPF rate for 2021-22 was announced at 8.1%, the lowest level since 1977-78, in March 2022 and approved by the finance ministry in June. file | Photo credit: The Hindu
Almost two years after the presentation of the budget 2021-22 Tax on annual Employees’ Provident Fund (EPF) contribution Over ₹2.5 lakh, the implementation challenges are affecting lakhs of EPF members whose interest dues for that year are yet to be credited to their accounts.
EPF rate for 2021-22 announced at 8.1%The lowest level since 1977-78 was in March 2022 Approved by Ministry of Finance in June, In October 2022, Finance Minister Nirmala Sitharaman had attributed the delay in EPF interest credits to a software upgrade and assured that the credits would appear soon.
Since then, the Employees’ Provident Fund Organization (EPFO) has split the EPF passbooks into taxable and non-taxable contributions for 2021-22, but interest is yet to be credited to many EPF account holders.
“Annual accounts for the year 2021-22 not yet processed by technical team in EPFO HO [Head Office]Raghuttam Pai, an employee of a Mumbai-based fintech firm, was informed last Friday by the retirement body’s grievance redressal team in response to his questions about the missing interest.
“For a while, the EPFO website as well as the app was down for some upgrades and I thought after that, there would be interest,” said Mr. Pai. Hindu, “It is surprising that we are yet to get last year’s interest while this financial year is coming to an end. Citizens have to pay penalty charges when tax returns or PF contributions are delayed, but no one is held accountable when the government delays our dues.
“I understand that the EPF passbooks for 2021-22 are now showing the taxable and non-taxable contributions of the employees in separate columns, hence some change has been made in the software. But clearly the final interest credit for 2021-22 is still facing some challenges due to the delay,” explained Saraswati Kasturirangan, Partner, Deloitte India Hindu.
no answers to questions
A detailed query on the issue was sent to Central PF Commissioner Neelam Shami Rao this Monday, but no response was received till the time of going to press.
The members of the Central Board of Trustees (CBT) that oversees the EPFO are not happy. “The interest was declared several months back, and we are almost at the end of the next financial year. I would urge the EPFO officials to ensure that every single member’s interest is credited immediately, even if it is for Have to work overtime. Treat it as if it is your own due,” said CBT member KE Raghunathan.
Michael Dias, a board member, termed the delay in crediting interest as ‘a serious matter’ which clearly shows inefficiency on the part of EPFO.
“A small number of EPF accounts include contributions of more than ₹2.5 lakh per year and even if you had to split those contributions into two accounts, interest calculation and crediting should not take that much time in today’s times And all the records go online. , EPFO has a significant budget for technological upgradation and must pull up its bootstraps to rectify the situation,” he said.
The EPFO board, headed by Union Labor and Employment Minister Bhupendra Yadav, is expected to meet by March to finalize the EPF rate to be paid to members for 2022-23.
The board members are likely to have flagged this unprecedented delay and pointed out that the EPF interest for 2020-21 was credited to members’ accounts by December 2021. Ms Kasturirangan said members are paying the balance amount to withdraw their EPF savings. ‘Up to date’ with interest credit.