EPFO raises interest rate to 8.15% for FY23 from 8.1% last year: Report
New Delhi, Mar 28 2023
The Employees' Provident Fund Organisation (EPFO), India's retirement fund body, has fixed rate of interest at 8.15 per cent on employees' provident fund (EPF) deposits for 2022-23 at its meeting on Tuesday, as reported by news agency PTI.
Earlier, in March 2022, EPFO had lowered the interest on EPF to over a four-decade low of 8.1 per cent from 8.5 per cent in 2020-21. It currently has over 50 million subscribers. It was the lowest since 1977-78, when the EPF interest rate stood at 8 per cent.
The 8.5 per cent interest rate on EPF deposits for 2020-21 was decided by the Central Board of Trustees (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.
In March 2020, EPFO 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.
EPFO provided 8.65 per cent interest rate to its subscribers in FY17 and 8.55 per cent in FY18. The rate of interest was slightly higher at 8.8 per cent in FY16. The retirement fund body had given 8.75 per cent rate of interest in FY14 as well as FY15, higher than 8.5 per cent for FY13.
The rate of interest was 8.25 per cent in FY12.
[The Business Standard]