The central government has good news for EPF subscribers. The EPFO Central Board of Trustees (CBT) has made a significant decision regarding interest payments during the settlement process, providing additional benefits to EPF subscribers. In the future, interest will be calculated up to the date of claim settlement.
Previously, interest was calculated only up to the 24th of the month during the settlement process. However, this will now change, and interest will be payable up to the settlement date.
The Central Board of Trustees believes this new system will benefit PF subscribers and reduce their complaints.
The 236th CBT meeting, chaired by Union Minister for Labour and Employment Mansukh Mandaviya, was held in Delhi on November 30. During this meeting, several key decisions regarding EPFO were made.
Additionally, the CBT has decided to grant amnesty to companies that have not registered with EPFO and are evading the deposit of employee funds to avoid financial burdens.
The EPFO has submitted proposals to the central government to implement the Amnesty Scheme-2024. This scheme aims to allow these companies to voluntarily disclose their details without facing penalties, which will be facilitated through an online declaration.
The amnesty scheme is expected to be announced by the end of this month as part of the initiative to provide benefits under the Employment Linked Incentives Scheme announced in the budget.
Furthermore, the CBT has decided to extend the Employee Deposit Linked Insurance Scheme, which will be implemented starting April 28, 2024. In case of a subscriber’s death, this scheme will provide insurance coverage ranging from ₹2.5 lakh to ₹7 lakh.
Lastly, following the success of the first phase of the Centralized Pension Payment System, which enables pensioners to receive their pensions from anywhere in the country, the second phase will be implemented in 20 additional regional offices. The CBT meeting confirmed that it will be fully operational from January 1, 2025.