EPFO Interest Rate: EPFO Board To Meet On March End, Rate Expected To Be Around 8% For 2022-23: Report
EPFO Board to discuss interest rate on Mar 25-26 : With returns on equity investment expected to be better, there are chances that the interest rate is reportedly retained at 8.1 per cent or brought down a tad lower to 8 per cent.
EPFO interest rate : The Employees' Provident Fund interest rate is expected to be lower than the current rate of 8.1 per cent as the Central Board of Trustees (CBT) will convene on March 25-26 to determine the rate for the financial year 2022-23.
The return on EPFO investments this year remained strong as the Covid withdrawals have come down significantly, reported publication the Economic Times citing an official.
The income of the retirement fund body of EPFO is being worked upon to determine the interest rate for the current fiscal year, according to the report which quoted an official as saying that the rate is likely to hover around 8 per cent.
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With returns on equity investment expected to be better, there are chances that the interest rate is retained at 8.1 per cent or brought down a tad lower to 8 per cent, the official added.
Even as the agenda for the meeting is not officially circulated, the report cites its sources saying the interest rate is unlikely to go below 8 per cent level in a rising interest rate scenario.
The meeting of the CBT has been scheduled for the last week of March, while the Finance Investment and Audit Committee (FIAC) could meet a day in advance to recommend the interest rates for 2022-23.
EPFO Interest Rate In March 2022
In March 2022, the retirement fund body recommended an interest rate of 8.1 per cent for over 6 crore active subscribers, which was the lowest in four decades and was significantly lower than 8.5 per cent credited in the preceding year. This was on an estimated income of RS76,768 crore with Rs450 crore as surplus.
In June 2022, the finance ministry had then ratified the interest rate. It is to be noted that several subscribers had reported delays in crediting of an interest rate for FY22.
Meanwhile, eligible members can apply jointly with their employers for an enhanced pension till May 3 through the unified members' portal of the EPFO retirement fund body. Previously, there were concerns that March 3, 2023, was the final deadline for opting for a higher pension.
The URL on the EPFO unified members' portal activated recently shows the last date for availing the option of a higher pension is May 3, 2023.
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