EPFO Fixes 8.15 Per Cent Interest Rate On Employees' Provident Fund For 2022-23
In March 2022, the EPFO had lowered the interest on EPF for 2021-22 to an over four-decade low of 8.1 per cent for its about five crore subscribers, from 8.5 per cent in 2020-21
Retirement fund body Employees’ Provident Fund Organisation (EPFO) fixed 8.15 per cent rate of interest on employees’ provident fund (EPF) deposits for 2022-23 at its meeting on Tuesday, as reported by PTI.
"The Employees’ Provident Fund Organisation’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," citing a source the news agency reported.
In March 2022, the EPFO had lowered the interest on EPF for 2021-22 to an over four-decade low of 8.1 per cent for its about five crore subscribers, from 8.5 per cent in 2020-21. This was the lowest since 1977-78, when the EPF interest rate stood at 8 per cent. The 8.5 per cent interest rate on EPF deposits for 2020-21 was decided by CBT in March 2021.
After the CBT's decision, the interest rate on EPF deposits for 2022-23 will be sent to Ministry of Finance for concurrence. After the government's ratification, the interest rate on EPF for 2022-23 will be credited into accounts of over five crore subscribers of EPFO. The 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.
Meanwhile, according to a report by the Hindu on Monday, the EPFO, which manages old-age savings of 27.73 crore Indians, continues to invest in Adani Enterprises and Adani Ports even after the port-to-energy conglomerate’s stocks were routed following a report by short-seller Hindenburg Research.
A report by newspaper revealed that the EPFO plans to invest till at least September this year. However, its trustees are expected to meet this week to rethink their investment approach, the publication reported. The EPFO will continue to invest in the two Adani stocks unless the trust decides against it during the meeting.
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