EPFO fixes 8.15% interest rate on employees’ provident fund for 2022-23
Last year, EPFO had declared 8.1% as the rate of interest for 2021-22, which is the lowest in four decades. 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.
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 per cent for 2019-20, from 8.65 per cent provided for 2018-19.
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 had given 8.75 per cent rate of interest in 2013-14 as well as 2014-15, higher than 8.5 per cent for 2012-13.
The rate of interest was 8.25 per cent in 2011-12.
Status report on 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, judgment on higher pension. Sources told TOI that labour minister Bhupender Yadav assured the Board that the judgment will be implemented in “full”.
In its meeting of the Pension Implementation and EDLI Committee (PIEC) on March 15, EPFO had decided to issue a set of FAQs to “demystify” the apex court judgment and its implications on pensioners.
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.
A report of the standing committee on labour tabled in Parliament this month said the ministry told the House panel that the implications of the judgment had not been factored in to the BE 2023-24 allocation.
(With inputs from agencies)