The Employees’ Provident Fund Organization (EPFO) has increased the interest rate for the employees’ provident fund to 8.15% for the 2022-23
The EPFO reduced the interest rate on EPF for the fiscal year 2021-22 to 8.1%, which is the lowest it has been in over 40 years. This change affected approximately 5 crore subscribers, compared to the previous year’s rate of 8.5%.
The Employees’ Provident Fund Organisation (EPFO) has increased the interest rate on employees’ provident fund for the fiscal year 2022-23 to 8.15%, up from 8.1% in the previous year. This marks a change from March 2022, when EPFO reduced the interest rate to 8.1%, which was the lowest it had been in over 40 years. The reduction had affected approximately five crore EPF subscribers, compared to the previous year’s rate of 8.5%.During a meeting of the Central Board of Trustees (CBT) of the Employees’ Provident Fund Organisation (EPFO), which is the highest decision-making body of the EPFO, discussions were held regarding the pension linked to higher salaries, financial estimates for the year, and the interest rates for FY23. The CBT is headed by Union labour and employment minister Bhupender Yadav.
The decision to increase the EPF interest rate to 8.15% will impact approximately six crore active EPFO subscribers, including 72.73 lakh pensioners in FY22. In an official statement, the EPFO said that the recommended interest rate of 8.15% will protect the surplus and guarantee increased income for members. Additionally, the interest rate and the surplus of 663.91 crores are higher than the previous year.
In the past, EPFO had provided a higher interest rate of 8.75% for the fiscal years 2013-14 and 2014-15, which was more than the 8.5% rate for 2012-13. The interest rate for 2011-12 was 8.25%.
EPFO has been able to provide higher income to its members over the years, with minimal credit risk, due to the organization’s prudent and balanced investment approach. The EPFO interest rate is higher than other comparable investment options due to the credit profile of the EPFO investment.
EPFO has consistently focused on the safety and preservation of principals while also considering caution and growth in their investment approach. Recently, EPFO announced that eligible members can apply for higher pensions through the unified members’ portal until May 3, 2023, along with their employers.
During a meeting on Monday, the CBT addressed the ongoing issue of higher pensions and agreed to implement the Supreme Court judgment effectively. A CBT member stated that discussions focused on resolving concerns regarding the joint option form for subscribers opting for higher pensions linked to actual salaries following the Supreme Court’s ruling on the matter. The officials assured that the Supreme Court’s judgment would be implemented in the truest spirit.
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