Employees Provident Fund (EPF) Interest Rate 2022-2023 Latest Update: The Employees' Provident Fund Organisation (EPFO) has increased the interest rate on the Employees' Provident Fund for 2022-23. The retirement fund body has hiked the rate of interest on EPF deposits of employees to 8.15 percent from 8.1 percent.
As reported by news agency PTI, "The Employees’ Provident Fund Organisation’s apex decision making body Central Board of Trustees (CBT) has decided to provide 8.15 percent rate of interest on EPF for 2022-23 at its meeting on Tuesday."
In March 2022, EPFO had reduced the interest rate on EPF for its over five crore subscribers to an over four-decade low of 8.1 percent from 8.5 percent in 2020-21.
What Is Employees Provident Fund? Why Is It Important?
As per EPFO rules, at least 12 percent of an employee’s basic salary is compulsorily deducted to be saved in the provident fund, while an employer co-contributes another 12 percent.
Under the Employees Provident Funds and Miscellaneous Provisions Act, 1952, provident fund savings for employees are mandatory because it is the primary source of social security and assured retirement income in a country like India where pensions are provided to everyone.
The interest rate on Employees Provident Fund deposits for 2022–2023 will now be sent to the Ministry of Finance for approval post the decision by CBT. After being verified by the government through the Finance Ministry, the EPFO can provide the rate of interest.
On 27 and 28 March, the EPFO's Central Board of Trustees convened for a two-day conclave to review the interest rate as well as the organisation's annual accounts for 2022–23, financial performance, and investment returns.
The EPFO’s savings interest rates are put into effect only after being sanctioned by the finance ministry, as mandated by law.