The Central Board of Trustees (CBT) of the Employees’ Provident Fund Organization (EPFO) recommended that the interest rate on deposits in Provident Fund (PF) be raised to 8.15%, and the Center accepted this suggestion on July 24.
The new rate will be in effect for the current fiscal year.
On March 28, 2023, the retirement fund organization EPFO slightly increased the interest rate on Employees’ Provident Fund (EPF) deposits for its more than six crore subscribers to 8.15 percent for 2022–23.
The EPFO has requested that the filing offices credit the members’ accounts with the 8.15 percent interest on EPF for 2022–2023 as per a formal order published on Monday.The procedure of crediting the interest to subscribers’ accounts will now be initiated by the EPFO field offices.
In March 2022, the Employees’ Provident Fund Organisation (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.
In May, EPFO added 16.30 lakh net members
Retirement fund body EPFO added 16.30 lakh members on a net basis in May this year, according to payroll data released last week.
The data shows that the number of new members who joined in May 2023 was the highest in the previous six months, at almost 8.83 lakh. According to a statement from the Ministry of Labour and Employment, the age group of newly recruited members between the ages of 18 and 25 made up 56.42% of all new members added throughout the month. “Around 11.41 lakh members left EPFO but returned, possibly switching jobs and returning to EPFO-covered establishments, and chose to transfer their accumulations rather than apply for final settlement, extending their social security protection.”
The data shows that 3,673 enterprises have increased their employees’ access to EPFO social security benefits by sending their first ECR during the month, according to a statement from the labour ministry.
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