PF Interest Rate: EPFO has issued a circular and directed all its offices not to reject the transfer claim due to service overlap. The circular said, ‘Service overlap can happen due to many reasons.
EPFO Circular: If you are also a job holder and PF is deducted from your salary every month, then this news is of your use. Yes, a relief decision has been taken by the Employees’ Provident Fund Organization (EPFO) for the employees. Now the PF claim of the employees will not be rejected if there is an overlap during the service period. Along with this, now there will be no need for verification from the HR department to claim and withdraw money. With the new rule, employees will be able to access their savings easily.
What is service overlap?
Service overlap is called when an employee is seen working in two different companies on the same date in the records. This happens when there is a mistake in the date of leaving the job from one company and the date of joining another company. Earlier, due to this overlap, the regional offices of EPFO used to reject the claim. But in the circular issued on 20 May 2025, EPFO said that the claim will have to be accepted even if there is an overlap.
Overlap is no longer the basis of claim
EPFO has issued a circular and instructed all its offices not to reject the transfer claim due to service overlap. The circular said, ‘Service overlap can happen due to many reasons. The claim should not be rejected on this basis. The claim will be stopped only in the condition when there is a genuine need to clarify the overlap.
Big relief to employees
The decision taken by EPFO will benefit lakhs of people out of 7 crore salaried class. For the employed, the Provident Fund is a major source of retirement income and financial security. It is the main part of their lifelong savings. Personal finance expert Kunal Kabra said, ‘This is a big relief for the employees. If an employee worked for 20 years and there was even a day’s overlap between two companies, his money would get stuck.’ Especially after the death of the employee, his family had a lot of trouble in withdrawing this amount.
8.25% interest rate approved
Earlier, the decision of EPFO to retain the interest rate on money deposited in the PF account at 8.25% for the financial year 2024-25 was approved by the Finance Ministry. In the month of February, the Central Board of Trustees of the Employees’ Provident Fund Organization (EPFO) in a meeting on February 28 decided to retain the interest rate at 8.25%. For FY 2023-24, the interest rate was increased by 0.10% from 8.15% to 8.25% by the government.
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