Good News for Employees: EPFO Hikes 8.15% Interest Rate on Provident Fund for 2022-23

The Employees' Provident Fund Organisation (EPFO) for 2022-23 has raised the interest rate on the employees' provident fund (EPF). The retirement fund body has fixed an 8.15 per cent rate of interest on EPF deposits for 2022-23 at its meeting, according to the news agency reports.

If the expected interest rate is the same, then there is an increase in the EPF account interest rate by 0.05% for about five crores subscribers. Sources also said, "The Employees’ Provident Fund Organisation’s apex decision making body Central Board of Trustees (CBT) has decided for 2022-23 to provide an 8.15 per cent rate of interest on EPF in its meeting."

The decision came on the second day of the two-day meeting which began on Monday.

After the CBT's decision, the interest rate on EPF deposits for 2022-23 will be sent to the Ministry of Finance for synchronizing. EPFO provides the rate of interest only after it is approved by the government through the finance ministry.

Last year, the interest rate for EPF account was at an over four-decade low at 8.1 per cent and 8.10% for FY 2021-22.

EPFO is a social security organization accountable for providing social security benefits in the form of pension, provident, and insurance funds to the organized workforce of the country.

Besides the interest rate, the CBT will also discuss the annual accounts of the EPFO for 2022-23.

The trustees will also consider the action taken by the EPFO on the Supreme Court order for giving a four-month window to Employees' Pension Scheme 1995 subscribers to opt for higher pensions.

Till May 3, 2023, the EPFO has offered the facility to opt for higher pensions to its subscribers.

According to the Ministry of Labour and Employment, in January this year, EPFO added 14.86 lakh subscribers. Also, in addition to this, the ministry said that as many as 3.54 lakh members exited the fold of EPFO which was the "lowest exit" in the last four months.

One of the statements also read, out of 14.86 lakh subscribers, around 7.77 lakh new members have come under the range of EPFO for the first time.