Centre approves 8.15% interest rate on Employees Provident Fund for FY 2022-23

EPFO: The central government on Monday (July 24) approved the rate of interest at 8.15 per cent rate on deposits under the Employees Provident Fund (EPFO) scheme for the financial year 2022–23.

On March 28, 2023, the retirement fund body EPFO marginally raised the interest rate on employees' provident fund (EPF) deposits to 8.15 per cent for 2022–23 for its over six crore subscribers.

As per an official order issued on Monday, the EPFO has asked the filed offices to credit the interest at 8.15 per cent on EPF for 2022–23 into the accounts of members.

The order came after the finance ministry's concurrence to the EPF rate of interest approved by EPFO trustees earlier in March this year.

Now, the EPFO field offices will start the process of crediting the interest to subscribers' accounts. In March 2022, the EPFO reduced the interest rate on EPF deposits for 2021–22 to a four-decade low of 8.10 per cent 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.

EPFO provides the rate of interest only after it is ratified by the government through the finance ministry.

In March 2020, EPFO 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 provided an 8.65 per cent interest rate to its subscribers in 2016–17 and an 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 an 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.

With inputs from PTI