EPFO New Rule: These decisions of the government will benefit 7 crore EPFO members across the country. EPFO has settled 3.83 crore claims worth more than Rs 1.57 lakh crore in the current financial year.
EPFO Rule Change: Recently, the Central Board of Trustees (CBT) of EPFO met for the 236th time under the chairmanship of Union Minister Mansukh Mandaviya. During the meeting, the government has approved several changes to increase the benefits of EPFO members and simplify the process.
The Central Board of Trustees (CBT) of the Employees’ Provident Fund Organization (EPFO) has approved the redemption policy for Exchange Traded Funds (ETFs) for more income of members. According to reports, the CBT has approved reinvesting 50 percent of the amount received from ETFs in Central Public Sector Enterprises (CPSEs) and India 22 Index.
According to the new policy, it is mandatory to keep the fund for at least five years. The reports further said that the remaining amount will be invested in other financial instruments, such as government securities and corporate bonds. Information given by the Union Ministry of Labour and Employment said that the CBT has approved the guidelines for investment in units issued by Infrastructure Investment Trusts (InvITs)/Real Estate Investment Trusts (REITs) sponsored by public sector undertakings regulated by the Securities and Exchange Board of India (SEBI).
You will get the benefit of higher interest
The board also approved an important amendment in the EPF Scheme 1952. As per the existing provisions, interest is paid only till the end of the previous month for claims settled by the 24th of every month. Now interest will be paid to the member till the date of settlement. According to the ministry, this will benefit the members financially and reduce complaints.
Increase in auto claim limit
Apart from this, the government has also increased the auto claim limit. For home, marriage and education, this limit has now been increased from Rs 50,000 to Rs 1 lakh. The government has said that 1.15 crore auto claims have been settled this financial year. As per the data till November 2024, the rejection rate has come down to 14 percent.
These decisions of the government will benefit 7 crore EPFO members across the country. The CBT said that the EPFO has accelerated the pace of its work by settling 3.83 crore claims worth more than Rs 1.57 lakh crore in the current financial year. During the financial year 2023-24, the EPFO had settled 4.45 crore claims amounting to Rs 1.82 lakh crore.
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