The Employees Provident Fund Organization (EPFO), responsible for setting interest rates for PF account holders, faces a delay in announcing the rates for the upcoming financial year 2023-24.
Reports suggest that the EPFO has been instructed to hold off until it receives approval from the Finance Ministry.
EPFO Reports Losses
Recent media reports indicate that the EPFO, which falls under the Ministry of Labor and Employment and serves over 7 crore subscribers, is facing financial losses.
In the financial year 2021-22, it was expected to have a surplus of Rs 449.34 crore, but it ended up with a deficit of Rs 197.72 crore.
How EPF Interest Rates Are Determined
For the financial year 2022-23, the EPF interest rate stands at 8.15 percent, a slight increase from the previous year’s 8.10 percent.
It’s important to note that interest on EPF accounts is calculated monthly but deposited at the end of the financial year.
The Finance Ministry collaborates with the Central Board of Trustees (CBT) of EPFO to determine the annual interest rate.
Update Your EPF Account Information
EPFO has introduced a streamlined process for members to update their account information, including their name, Aadhaar number, and more.
This recent circular from EPFO enables members to make necessary updates to their records, ensuring accurate and up-to-date information.
