Central Government Approves 8.15% Interest Rates on Deposits via EPF
For the fiscal year 2022-23, the central government has approved an interest rate of 8.15 percent on deposits made through the Employees Provident Fund (EPF) scheme. EPFO, the retirement fund body, raised the interest rate on employees' provident fund (EPF) deposits to 8.15 percent for 2022-23 on March 28, 2023, for its over six crore subscribers.
In an official order issued on Monday, the EPFO requested that the offices credit the 8.15 percent interest on EPF for 2022-23 into the accounts of members. The order followed the finance ministry's approval of the EPF rate of interest approved by EPFO trustees earlier this year in March. The EPFO field offices will now begin the process of crediting the internet into subscribers' accounts.
To have safeguards, the CBT recommended balancing both the growth and surplus funds. The recommended interest rate of 8.15 percent protects the surplus while also providing increased income to members. Both the interest rate of 8.15 percent and the surplus of Rs 663.91 crore are higher than the previous year.
Employees' Provident Fund Organisation (EPFO) reduced the interest rate on EPF deposits for 2021-22 to a four-decade low of 8.10% in March 2022, down from 8.50% in 2020-21. This was the lowest rate since 1977-78, when the EPF interest rate was 8%.