In NEW DELHI: At its two-day meeting starting on Monday, the retirement fund authority EPFO is set to announce the rate of interest on employees’ provident fund (EPF) contributions for 2022–2023.
In March 2022, EPFO reduced the interest on EPF for its over five crore subscribers to an over four-decade low of 8.1% from a rate of 8.5% in 2020–21.
The EPF interest rate hadn’t been this low since 1977–1978, when it was 8%.
A source stated that the Central Board of Trustees (CBT), the top decision-making body of the Employees’ Provident Fund Organization (EPFO), “is likely to decide the rate of interest on EPF for 2022-23 at its two-day meeting beginning on Monday afternoon.”
Besides with interest rates, the CBT will also go over the EPFO’s upcoming 2022–2023 annual accounts.
The trustees will also discuss the EPFO’s response to the Supreme Court judgement providing subscribers to the Workers’ Pension Plan of 1995 a four-month option to choose a higher pension.
Up to May 3, 2023, subscribers to the EPFO have the option to choose a larger pension.
The CBT determined in March 2021 to set the interest rate on EPF deposits year 2020–21 at 8.5%.
The interest rate on EPF deposits for 2022–2023 will be sent to the Ministry of Finance for approval following the CBT decision.
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.
In 2016–17 and 2017–18, EPFO offered its customers an interest rate of 8.55% and 8.65%, respectively. Interest rates were marginally higher in 2015–16, at 8.8%.
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.
