After the meeting of the Central Board of Employees’ Provident Fund Organization (EPFO) on Saturday, a relief news has come out for the employed people.
After the meeting of the Central Board of Employees’ Provident Fund Organization (EPFO) on Saturday, a relief news has come out for the employed people. It was decided in the meeting that the centralized IT system of Provident Fund (PF) account would be approved.
This means that now after changing the job, the employee will not need to transfer the PF account to another company. With the help of centralized IT system, your old PF account will be automatically linked with the new account.
It was said in the board meeting that 5 percent of the annual deposit of EPFO will be invested in alternative investments (which includes Infrastructure Investment Trust InvITs). Sunil Bhartwal, Secretary, Ministry of Labor and Employment confirmed this.
The hassle of transferring an account is over
Till now it is a rule that when an employee leaves one company and goes to another, he either withdraws PF money or gets it transferred to another company. The employee had to do this work himself, but after the working of the centralized system, the different accounts of the PF account holders will automatically merge into one. This will help the employees get rid of these hassles.
In the meeting of Employees’ Provident Fund chaired by Labor Minister Bhupendra Yadav, a decision was also expected to be taken regarding the interest being given on PF, but could not be done due to some reason. At present, the annual interest rate on PF is 8.5% per annum.
