EPFO cheating isnt it!

From a legal standpoint, the delay in interest crediting may not technically be “cheating” because the EPFO is not violating any specific regulations by doing so. The timelines for interest crediting are outlined by EPFO, but they have been widely criticized for being too long, especially given the rapid digitization of services and the growing expectations for faster services. However, many contributors argue that if the government and the EPFO are managing a large, centralized fund, they should be held accountable for delivering benefits to contributors promptly. The interest earned on these funds belongs to the contributors, and withholding that interest for months could be seen as undue delay. more  

What Can Be Done to Address This? 1. Streamlining Processes: The EPFO can consider implementing a quicker, more automated system to calculate and credit interest directly to accounts without long delays. With advances in digital banking and real-time payment systems, there is no reason why the interest cannot be credited within a reasonable time frame, ideally within the same financial year. 2. Improving Transparency: EPFO needs to be more transparent about the processes involved in calculating and crediting interest. Regular updates should be provided to members about the status of their accounts and when to expect the interest crediting. This would help build trust and reduce dissatisfaction. 3. Addressing the Interest Calculation Process: EPFO could explore ways to reduce the time lag between the end of the financial year and the crediting of interest. Implementing quarterly interest credits or at least an interim credit would go a long way in ensuring that account holders are not kept waiting for months. 4. Compensation for Delayed Interest: In case of prolonged delays, EPFO could consider compensating contributors for the lost interest due to delays, especially in cases where systemic inefficiencies lead to long gaps between the due date and the actual crediting of funds. 5. Regulatory Oversight: The Ministry of Labour and Employment or a separate regulatory body could closely monitor EPFO’s operations to ensure that the management of funds is done in a manner that benefits contributors, and that any delays in crediting interest are addressed promptly. Conclusion: While it may not technically constitute cheating, the delayed crediting of interest on EPF is certainly a cause for concern, and it could be seen as a form of inefficiency or mismanagement that negatively impacts contributors. The government and EPFO need to improve the transparency, efficiency, and timeliness of the entire process to ensure that employees’ hard-earned savings are managed in their best interest. more  

This is only one of the many cheatings this Govt indulges in. Out of many PNG piped cooking gas supplied direct to homes is souced from waste gas from refineries which was previously being flared off untill IIT B developed a process to tap that gas, but Govt. Gave instruction to MGL to increase the prices to double gradually, this news was on " money control. com an Ambani enterprise, though they pulled out fast before I could save it. However since then prices have gone up more than double for a gas which govt gets free of cost. more  

Yes, very right. Not only this, government departments, whenever required to pay, pays the interest at a very low rate, but charges interest at very high rates. In fact, both the rates should be same. Also, the Pension is normally started very late. In my case it was started more than three years late but no interest was paid on the late payment. Similarly, Delhi government announced a Mukhyamantri Covid Pension Yojana. The pension was started almost 30 months later without any reason and I had to make atleast 30 visits to their various offices, write atleast 30-40 emails, and make atleast 100 whatsapp call and deposit documents atleast 30 times. Also, no overdue interest was paid and only one year's backlog pension was paid. This means that pension for approx 18 months was not paid and is not being paid by them inspite of repeated reminders. I request the FM to solve these issues in the interest of the larger public. more  

Though EPFO crediting interest dealayed, but it is credited to respective date and no loss of interest to EPFO member on subesequent year. For FY 2022-23 interest will be credited on last day of FY when it is due. This can can be checked by retriving passbook of respective year. Interest is paid to exit members on exit, who exit wothout waiting for crediting of inteset to all other active members. Neithre there is a saving of interest by govt. nor loss of interest to memerbs, due to credit of delayed interest. more