New Delhi: Retirement body employee provident fund organisation (EPFO) fixed Tuesday 8.15 per cent interest rate on the Employees’ Provident fund for 2022-23. The decision to hike the rate slightly was taken by EPFO’s board of trustees after a meeting here Tuesday. The meeting was chaired by Bhupendra Yadav, Union Minister for Labour and Employment.
Last year, EPFO had declared 8.1 per cent as the rate of interest for 2021-22, which was the lowest in 40 years. The last time the interest rate had slipped to 8 per cent was in 1977-78.
Subsequent to the CBT decision, the interest rate on EPF deposits for 2022-23 will be sent for the Finance Ministry’s approval. 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.
In March 2020, EPFO had lowered the interest rate on provident fund deposits to a seven-year low of 8.5 per cent for 2019-20, from 8.65 per cent provided for 2018-19.
The board’s recommendation involves distribution of more than Rs 90,000 crore in the members’ accounts on a total principal amount of Rs 11 lakh crore.