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8.5% interest rate on PF Deposits: Approval by Ministry of Finance
- The board of retirement fund body of EPFO had recommended an 8.5 percent interest rate
- Ministry of Finance endorsed an 8.5% interest rate for PF,
- The board of retirement fund body Employees Provident Fund Organization (EPFO), had suggested an 8.5% loan fee
- The finance ministry has approved an 8.5 percent rate of interest on provident fund deposits for 2020-21, paving the way for the Employees' Provident Fund Regulation (EPFO) to credit beneficiaries with up to 2% in additional monthly earnings over what they would have earned at existing rates through regular deposits into their accounts. " It is a top source familiar with developments within NDFPO.
- After the labor ministry's suggestions on rate of interest on the provident fund for the year as per the ministry's of finance endorsement, the Employees Provident Fund Organization will actually want to begin attributing it to the record of more than 60 million recipients.
- Employees' Provident Fund Organization may credit the interest before Diwali, bringing cheers and alleviation in front of merriments.
- On March 4, the retirement fund manager said the 8.5 % PF stores will be unaltered
- The Employees Provident Fund Organization board of trustees, headed by the labor minister, had approved the interest rate of 8.5 percent for this year as well. But, as per rules, the Ministry of Labor had to seek the approval of the Ministry of Finance on the proposed rate.
- In the meantime, the Employees Provident Fund Organization added 14.81 lakh net subscribers in August this year, with first-time job seekers having contributed nearly 50% of the total net subscriber additions.
PF Withdrawal Step-by-Step Guide (EPF Online Claim Process)
Employees who have completed KYC formalities can withdraw Provident Fund (PF) online through the EPFO Member Portal without visiting the EPF office. Before Applying for PF Withdrawal. Ensure the following are updated and verified in your UAN account:
- UAN is activated.
- Aadhaar is linked and verified.
- PAN is linked (where applicable).
- Bank account is seeded and verified.
- Mobile number linked with Aadhaar is active.
- Date of Joining (DOJ) and Date of Exit (DOE) are updated by the employer.
Before filing a PF claim, download and verify your EPF Passbook, KYC status, and service history. Most claim rejections occur because the Date of Exit, Aadhaar details, or bank account details are not updated correctly in EPFO records
Common Reasons for PF Claim Rejection
- Bank account not verified
- Aadhaar mismatch
- Incorrect date of exit
- KYC not approved
- Name mismatch between Aadhaar and EPFO records
- Multiple UAN issues
TDS on PF Withdrawal
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No TDS If PF balance is withdrawn after 5 years of continuous service.
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TDS Applicable: If withdrawal before completing 5 years of service. and the amount exceeds prescribed limits. PAN should be updated to avoid higher TDS rates.
Expected Processing Time
- Generally claim settlement: 7–20 days, amount credited directly to the verified bank account. (Actual timelines may vary depending on verification and EPFO processing.)
