For 2022–2023, the government approves an interest rate of 8.15% on employee provident fund deposits

The decision to raise the interest rates on deposits made via the Employees Provident Fund (EPF) to 8.15 percent was confirmed by the government on Monday. According to PTI, the EPF rates have risen from an all-time low of 8.10% for FY 2021–22.

Subject to final government approval, which arrived today, the Employees Provident Fund Organisation (EPFO) agreed to raise the rates to 8.15 percent for 2022–23 on March 28, 2023.

According to the research, there are already more than six crore subscribers to the employees’ provident fund (EPF).
Following Monday’s approval, an official was cited as stating that the EPFO has instructed its field offices to credit the members’ EPF deposits’ 8.15 percent interest into their accounts.

The rate increase was agreed by the trustees of the EPFO before the finance minister made its choice. It is now anticipated that the EPFO field offices will begin crediting the interest to the subscribers’ accounts.

According to the article, EPFO lowered the rate in March 2022 from 8.5 percent in FY2020-21 to 8.10 percent for FY2021-22, which is the lowest rate since 1977–1978, when it was 8 percent.

The Union Labour and Employment Minister serves as the chairman of the organization’s highest decision-making body, the Central Board of Trustees (CBT) of the EPFO.
in March 2023
The interest rate is 8.15%, and the CBT stated in its judgment that “the surplus of Rs. 663.91 crore is higher than the last year.” Additionally, it said that EPFO could provide its members with larger incomes while posing the least amount of credit risk.
The interest rate of EPFO is greater than other similar investment channels accessible to subscribers, according to the statement, “considering the credit profile of the EPFO investment.”
Contributions to EPF
EPF fund contributions are required from both companies and workers.
EPF contributions are required of all paid workers. Additionally, employers must match any employee contributions made to their EPF account. Employers pay 3.67 percent to the workers’ Pension Fund (EPF), while workers contribute 12.3% of their income to their EPF accounts. The remaining 8.33 percent goes to the Employees’ Pension Scheme (EPS). If the combined contributions in an EPF and voluntary provident fund (VPF) account surpass Rs 2.5 lakh in a fiscal year, interest received would be taxed.