At least 6 million, or 10-12%, of Employee Provident Fund Organisation's (EPFO) subscribers will have to wait longer for their 2019-20 interest payment, as inaccuracies in the data of individual subscribers have held up fund transfers to many establishments, reports The Economic Times.
The EPFO had started crediting interest at 8.5% for 2019-20 at the beginning of the new calendar year and so far funds have been transferred to more than 50 million accounts. EPFO has a subscriber base of about 60 million. Usually the process is completed within a week’s time.
Top government sources told ET that the process would take another month or so and the EPFO is expected to credit interest to all subscribers by the end of the current fiscal year.
Every year, the EPFO credits interest on establishment basis and not on individual basis. If the details of even one employee in the establishment do not match, payments to the entire establishment get stuck resulting in delays. This year, this glitch has impacted a considerable number of establishments.
The EPFO is now working on a software upgrade to fix the problem.
The EPFO will shortly announce the interest earned on PF deposits for 2020-21 and the same will be credited only towards the end of the next fiscal year.
The interest rate of 8.5% for 2019-20 was the lowest in seven years – the same rate was last offered in 2012-13.