EPFO interest rate raised to 8.15 pc

New Delhi: Retirement fund body EPFO on Tuesday marginally raised interest rate on employees' provident fund (EPF) deposits to 8.15 per cent for 2022-23 for its over six crore subscribers. In March 2022, Employees' Provident Fund Organisation (EPFO) had lowered the interest rate on EPF for 2021-22 to a four-decade low of 8.10 per cent for its subscribers, from 8.5 per cent in 2020-21. This was the lowest since 1977-78, when the EPF interest rate stood at 8 per cent.

The apex decision making body of EPFO, Central Board Trustees (CBT) headed by Union Labour Minister Bhupender Yadav, recommended 8.15 per cent annual rate of interest to be credited on EPF accumulations in members' accounts for financial year 2022-23, a labour ministry statement said. The interest rate would be officially notified in the government gazette after approval of Ministry of Finance, following which EPFO would credit the rate of interest into subscribers' accounts, it said. The recommended rate of interest of 8.15 per cent safeguards the surplus as well as guarantees increased income to members, it stated adding that in fact, this rate of interest and the surplus of Rs 663.91 crore are higher than the last year's. According to EPFO's income projection, the body would have had a surplus of Rs 112.78 crore on providing 8.20 per cent interest rate on EPF for 2022-23. There would have been a deficit of Rs 438.34 crore on providing 8.25 per cent rate of interest.