Monday, May 20, 2024

EPFO likely to decide rate of interest on employees’ provident fund deposits for FY23 by March 28

The 8.5% interest rate on EPF deposits for 2020-21 was decided by the CBT in March 2021. File

The 8.5% interest rate on EPF deposits for 2020-21 was decided by the CBT in March 2021. File

The retirement fund body EPFO is likely to announce the rate of interest on employees’ provident fund (EPF) deposits for 2022-23 at its two-day meeting beginning Monday.

EPFO had lowered the interest on EPF for 2021-22 to an over four-decade low of 8.1% for its about five crore subscribers, from 8.5% in 2020-21 in March 2022.

This was the lowest since 1977-78, when the EPF interest rate stood at 8%.

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“The Employees’ Provident Fund Organisation’s [EPFO’s] apex decision-making body Central Board of Trustees [CBT] is likely to decide the rate of interest on EPF for 2022-23 at its two-day meeting beginning on Monday afternoon,” a source said.

Besides interest rate, the CBT will also discuss the annual accounts of the EPFO for 2022-23.

The trustees will also deliberate on the action taken by the EPFO on the Supreme Court order for giving a four-month window to Employees’ Pension Scheme 1995 subscribers to opt for higher pension.

The EPFO has provided the facility to opt for higher pension to its subscribers till May 3, 2023.

The 8.5% interest rate on EPF deposits for 2020-21 was decided by the CBT in March 2021.

Also Read | Labour Ministry asks EPFO to speed up work on higher pension

After the CBT decision, the interest rate on EPF deposits for 2022-23 will be sent to the Ministry of Finance for concurrence.

EPFO provides the rate of interest only after it is ratified by the government through the finance ministry.

In March 2020, EPFO had lowered the interest rate on provident fund deposits to a seven-year low of 8.5% for 2019-20, from 8.65% provided for 2018-19.

EPFO had provided 8.65% interest rate to its subscribers in 2016-17 and 8.55% in 2017-18. The rate of interest was slightly higher at 8.8% in 2015-16.

The retirement fund body had given 8.75% rate of interest in 2013-14 as well as 2014-15, higher than 8.5% for 2012-13.

The rate of interest was 8.25% in 2011-12.

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