Employees’ Provident Fund Organisation (EPFO) on Tuesday fixed an 8.15% rate of interest on employees’ provident fund (EPF) deposits for the fiscal year 2022-23. Earlier in March 2022, the EPFO had lowered the interest on EPF for 2021-22 to an over four-decade low of 8.1% for its about five crore subscribers, from 8.5% in 2020-21. According to reports, this was the lowest since 1977-78, when the EPF interest rate stood at 8%
“The Employees’ Provident Fund Organisation’s apex decision-making body Central Board of Trustees (CBT) has decided to provide an 8.15% rate of interest on EPF for 2022-23 at its meeting on Tuesday,” a source said.
EPF interest rate was decided by CBT
The 8.5% interest rate on EPF deposits for 2020-21 was decided by CBT in March 2021. After the CBT’s decision, the interest rate on EPF deposits for 2022-23 will be sent to the Ministry of Finance for concurrence.
After the government’s ratification, the interest rate on EPF for 2022-23 will be credited into accounts of over five crore subscribers of EPFO. EPFO provides the rate of interest only after it is ratified by the government through the finance ministry.
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EPFO had lowered the interest rate in March 2020
In March 2020, EPFO had lowered the interest rate on provident fund deposits to a seven-year low of 8.5% for 2019-20, from 8.65% provided for 2018-19.
EPFO had provided 8.65 per cent interest rates to its subscribers in 2016-17 and 8.55 per cent in 2017-18. The rate of interest was slightly higher at 8.8 per cent in 2015-16. The retirement fund body had given 8.75% rate of interest in 2013-14 as well as 2014-15, higher than 8.5% for 2012-13. The rate of interest was 8.25 per cent in 2011-12.
(With inputs from PTI)