Bhubaneswar: The central government has approved the rate of interest at 8.15 per cent rate on deposits under the Employees Provident Fund (EPF) scheme for the financial year 2022-23.
Retirement fund body EPFO on March 28, 2023, had marginally raised the interest rate on employees’ provident fund (EPF) deposits to 8.15 per cent for 2022-23 for its over six crore subscribers.
The EPFO in an official order issued on Monday has asked the offices for crediting the interest at 8.15 per cent on EPF for 2022-23 into the accounts of members. The order came after the finance ministry’s concurrence to the EPF rate of interest approved by EPFO trustees earlier in March this year. Now, the EPFO field offices will start the process of crediting the internet into subscribers’ accounts.
“The Ministry of Labour and Employment, Government of India, has conveyed the approval of the Central Government under para 60(1) of Employees’ Provident Fund Scheme, 1952 to credit interest at 8.15 per cent for the year 2022-23 to the account of each member of the EPF Scheme as per the provisions under Para 60 of EPF Scheme, 1952. You are accordingly requested to issue necessary instructions to all concerned for crediting the said interest to the members’ accounts,” the circular said.
The CBT recommended the amount balancing both the growth and surplus fund to have safeguards. The recommended interest rate of 8.15 per cent safeguards the surplus as well as guarantees increased income to members. Both the rate of interest at 8.15 per cent and the surplus of Rs 663.91 crore are higher than the last year.
In March 2022, Employees’ Provident Fund Organisation (EPFO) had reduced the interest rate on EPF deposits for 2021-22 to a four-decade low of 8.10 per cent from 8.5 per cent in 2020-21. This was the lowest since 1977-78, when the EPF interest rate stood at 8 per cent.
According to convention, the Ministry of Labour and Employment had sent the interest rate recommendation to the Ministry of Finance for ratification. After the government’s consent to the interest rate, the EPFO would now start crediting the rate of interest for the previous fiscal to the EPF subscribers.
