Centre approves 8.15% interest rate for EPF scheme for 2022-23

As per an Employees’ Provident Fund Organisation (EPFO) office order issued on July 24, the Union Ministry for Labour and Employment has conveyed the approval of the central government to credit interest at 8.15 per cent per annum for 2021-22 to every member of the EPF scheme.

“The Ministry of Labour and Employment, Government of India, has conveyed the approval of the Central Government under para 60 (1) of Employees’ Provident Fund Scheme, 1952 to credit interest for the year 2022-23 to the account of each member of the EPF Scheme…,” said a circular by the Employees’ Provident Fund Organisation (EPFO).

The Central Board of Trustees (CBT) of the EPFO on March 28 had set an 8.15 per cent interest rate on provident fund for this fiscal. The interest rate was hiked 0.05 per cent. Last year, the interest rate for EPF account was 8.10 per cent for FY 2021-22.

EPFO is one of the largest social security organization and has stayed true to its objective by maintaining and providing its subscribers with the high assured interest rate even during the periods of volatility in equity and capital markets.

The Employees Provident Fund is a must contribution for salaried employees. Besides, an employer is also required to make the matching contribution to the EPF account. An employee makes 12 per cent of his wages contribution to the EPF account on monthly basis. The employees full contribution is deposited to the EPF account.

In March 2022, Employees’ Provident Fund Organisation (EPFO) had 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.