EPF Interest Rate: For FY2022-23, the government can fix 8% interest rate on PF. For this CBT is expected to be held within a month.
EPF Interest Rate: An ET report states that the government may keep the interest rate on PF deposits around 8 per cent for the financial year 2022-23, which is almost equal to the previous financial year. It has been said that work is being done on the earnings of the Employees’ Provident Fund Organization.
According to ET’s report, 8 per cent is possible this year considering the high return on investment.
The EPFO’s Central Board of Trustees (CBT) is expected to meet at the end of this month or in early March to decide on the interest rate. After this, on the basis of the earnings of 2022-23, it will be recommended by the Finance Investment and Audit Committee.
Let us tell you, CBT is a tripartite body of EPFO which includes representatives of government, employees and employers and the decision of CBT is binding on EPFO. It is headed by the Labor Minister.
For 2021-22, the government had approved 8.1 per cent, the lowest interest rate in four decades on Employees’ Provident Fund deposits. The 8.1 per cent interest rate on EPF is the lowest since 1977-78, when it was 8 per cent.
The interest rate of 8.5 percent on EPF deposits for 2020-21 was fixed by the Central Board of Trustees (CBT) in March 2021.
EPF is a compulsory savings scheme under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952. It is managed under the aegis of Employees’ Provident Fund Organization (EPFO). It covers every establishment in which 20 or more persons are employed. The employee has to pay a fixed contribution towards the provident fund and an equal amount is paid by the employer on a monthly basis.
It may be noted that at the end of retirement or during service (under certain circumstances), the employee gets a lump sum amount along with the interest on the PF contribution that accrues. Government data shows that around 4.9 crore new subscribers joined the Employees’ Provident Fund (EPF) scheme during the period from September 2017 to November 2021.
