New Delhi :
On the second day of its two-day meeting that commenced on Monday, the Employees’ Provident Fund Organisation (EPFO) declared the interest rate for employees’ provident fund (EPF) deposits for 2022-23.
The EPFO has set the rate of interest at 8.15 per cent for EPF deposits.
The EPFO had previously reduced the EPF interest rate to 8.1 per cent for 2021-22, which marked the lowest rate in more than four decades.
This decision affected approximately five crore EPF subscribers
This was the lowest interest rate since 1977-78, when it was at 8 per cent.
According to news agency PTI, a source quoted that the apex decision-making body of the Employees’ Provident Fund Organisation,
the Central Board of Trustees (CBT), has now decided to raise the interest rate to 8.15 per cent for EPF in 2022-23 at its meeting held on Tuesday.
In March 2021, the Central Board of Trustees (CBT) had fixed the interest rate on EPF deposits for 2020-21 at 8.5 per cent.
The CBT’s decision on the interest rate for 2022-23 will now be forwarded to the Ministry of Finance for approval.
Once the government gives its concurrence, the interest rate for EPF in 2022-23 will be credited to the accounts of more than five crore EPFO subscribers.
It is noteworthy that EPFO announces the interest rate only after receiving ratification from the government via the finance ministry.
For the financial year 2019-20,
EPFO had reduced the interest rate on provident fund deposits to a seven-year low of 8.5 per cent from the earlier rate of 8.65 per cent provided for 2018-19.
In the preceding years, EPFO had given interest rates of 8.65 per cent in 2016-17 and 8.55 per cent in 2017-18.
The rate of interest was marginally higher at 8.8 per cent for 2015-16.
However, in 2013-14 and 2014-15, the retirement fund body had given a rate of interest of 8.75 per cent, which was higher than the 8.5 per cent provided in 2012-13.
The interest rate was 8.25 per cent in 2011-12.
