EPFO fixes 8.15% interest rate on employees’ provident fund for 2022-23

Finance Bill

NEW DELHI: The retirement fund body EPFO-Employees’ Provident Fund Organization- has fixed 8.15% interest rate on employees’ provident fund for 2022-23.
The rate of interest for 2021–2022 was set by EPFO last year at 8.1%, which is the lowest level in forty years. The last time the interest rate slipped to 8% was in 1977-78.
“The Employees’ Provident Fund Organization’s apex decision making body Central Board of Trustees (CBT) has decided to provide 8.15 per cent rate of interest on EPF for 2022-23 at its meeting on Tuesday,” PTI reported quoting a source.

Only once it has been approved by the government through the finance ministry does EPFO provide the interest rate.

The interest rate on provident fund deposits was reduced by EPFO in March 2020 from 8.65 percent for 2018–19 to a seven-year low of 8.5 percent for 2019–20.

EPFO had provided 8.65 per cent interest rate to its subscribers in 2016-17 and 8.55 per cent in 2017-18. The rate of interest was slightly higher at 8.8 per cent in 2015-16.
The retirement fund body offered an interest rate of 8.75 percent in 2013–14 and 2014–15, up from 8.5 percent in 2012–13.

The rate of interest was 8.25 per cent in 2011-12.

Update on the SC order
On Monday, the first day of the meeting, the EPFO presented a status report on the implementation of the Supreme Court’s November 4, 2022, judgement on higher pension. Sources told TOI that labour minister Bhupender Yadav assured the Board that the judgement will be implemented in “full”.

The Pension Implementation and EDLI Committee (PIEC) decided to publish a set of FAQs to “demystify” the apex court decision and its effects on pensioners at its meeting on March 15.

However, despite the extension of last date of application to May 3, the EPFO has still not issued the detailed explainer, nor clarified the method of deposit or computation of pension.

The ministry informed the House panel that the allocation for BE 2023–24 did not take the implications of the judgement into account, according to a report from the standing committee on labour that was presented to Parliament this month.