Four crore subscribers of Employees’ Provident Fund Organisation (EPFO) will soon receive interest for 2016-17 on their deposits. Labour Minister Bandaru Dattatreya on Thursday said the finance ministry has agreed to a rate of interest of 8.65 per cent. “Now, the communication will come. The formal discussions are over,” the minister said. He also said: “We will immediately issue the notification and credit the rate of interest to over four crore subscribers.” The Employees’ Provident Fund Organisation had earlier approved the 8.65 per cent rate on employee provident fund.
EPFO has also proposed a loyalty-cum-life benefit of up to Rs. 50,000 at the time of retirement for contributing to the scheme for 20 years or more. The benefit will also be provided in case of permanent disability even if the members have contributed for less than 20 years, the EPFO board has decided. The benefits will be available for EPFO subscribers after approval from the government.
The Central Board of Trustees (CBT), which is the EPFO’s apex decision-making body, has also recommended a minimum sum assured of Rs. 2.5 lakh in the event of death of a subscriber. At present, the dependants of the deceased get a sum assured of up to Rs. 6 lakh. There is no provision of minimum insurance and any benefit for surviving members or in cases of permanent disability under the scheme. The benefits will be available for EPFO subscribers after approval from the government.
Nearly four crore members of retirement fund body EPFO will soon be able to settle their claims like EPF withdrawal through mobile application UMANG. “The Employees’ Provident Fund Organisation (EPFO) is developing online claims settlement process by receiving application online,” Labour Minister Bandaru Dattatreya had said in a written reply to the Lok Sabha.