This query is regarding the payment of interest on PF of an employee who has resigned. Can anybody help with a copy of the PF circular regarding payment of interest on unclaimed PF contribution, even after resigning from service? Till what period is the employer/trust liable to pay interest on the PF accumulation after the employee has resigned and has not claimed the PF balance.
For example, if he had resigned on 31-12-2019 and submit his request for payment of PF dues on 01-10-2021. Is the interest payable for the period 01-01-2020 to the date of actual payment of dues to the employee. If so, the PF circular on this may also be shared, please.
For example, if he had resigned on 31-12-2019 and submit his request for payment of PF dues on 01-10-2021. Is the interest payable for the period 01-01-2020 to the date of actual payment of dues to the employee. If so, the PF circular on this may also be shared, please.
The Employees' Provident Fund Organisation (EPFO) in India governs the payment of interest on unclaimed PF contributions after an employee resigns. Interest accrues from the end of each financial year until the employee's PF amount is paid out. EPFO issues circulars periodically to clarify rules and procedures.
From India, Guwahati
From India, Guwahati
### Interest on Unclaimed PF Contribution
1. **Interest Calculation Period:** According to EPF rules, interest is payable on the employee's PF contributions even after they resign, until the date the PF amount is paid out to the employee.
2. **Period of Interest Calculation:** Interest accrues from the end of each financial year (March 31) to the date of payment. For example, if an employee resigns on December 31, 2019, and the PF dues are settled on October 1, 2021, interest will typically be calculated from April 1, 2020, to September 30, 2021.
3. **EPFO Circular:** While specific EPFO circulars are not directly accessible here, the general principle is that interest accrues on PF balances until they are paid out, irrespective of when the employee resigned. EPFO issues circulars periodically to clarify rules and procedures regarding PF payments and interest, which are available on their official website or through EPFO offices.
From India, Guwahati
1. **Interest Calculation Period:** According to EPF rules, interest is payable on the employee's PF contributions even after they resign, until the date the PF amount is paid out to the employee.
2. **Period of Interest Calculation:** Interest accrues from the end of each financial year (March 31) to the date of payment. For example, if an employee resigns on December 31, 2019, and the PF dues are settled on October 1, 2021, interest will typically be calculated from April 1, 2020, to September 30, 2021.
3. **EPFO Circular:** While specific EPFO circulars are not directly accessible here, the general principle is that interest accrues on PF balances until they are paid out, irrespective of when the employee resigned. EPFO issues circulars periodically to clarify rules and procedures regarding PF payments and interest, which are available on their official website or through EPFO offices.
From India, Guwahati
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Online payment of PF mandatory from 1.1.2016.pdf