EPFO hikes Interest rate on provident fund to 8.5 per cent

EPFO has marginally increased the interest rate to 8.15% for the current financial year from 8.1% in the previous year. The interest rate last year was the lowest in 40 years. "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 its subscribers' accounts," the Ministry of Labour and Employment said in a statement on Tuesday. The 8.15% interest rate for 2022-23 was recommended after a meeting between the labour ministry and the central board of trustees of the Employees' Provident Fund Organisation (EPFO). "The recommended rate of interest of 8.15% safeguards the surplus as well as guarantees increased income to members," the labour ministry said.

The 233rd meeting of Central Board of Trustees, EPFO, has recommended 8.15 per cent as rate of interest on Employees' Provident Fund deposits for 2022-23.

Happy to share the interest rate of EPFO is higher than other comparable investments avenues available for subscribers. pic.twitter.com/8Ffa2CjTgl

— Bhupender Yadav (@byadavbjp) March 28, 2023

After the CBT's decision, the interest rate on EPF deposits for 2022-23 will be sent to Ministry of Finance for concurrence. EPFO provides the rate of interest only after it is ratified by the government through the finance ministry.EPFO is a social security organization responsible for providing social security benefits in the form of provident, pension and insurance funds to the organized workforce of the country.