Govt approves 8.15% interest rate on PF deposits

The government on Monday approved the interest rate of 8.15 per cent recommended by the Central Board of Trustees of the Employees’ Provident Fund Organisation (EPFO) for its over 6 crore subscribers for the financial year 2022-23. In a circular issued today, the EPFO said the Ministry of Labour and Employment has conveyed the approval of the central government for the EPF interest rate to be credited into members’ accounts.

As per the convention, the Ministry of Labour and Employment sent the interest rate recommendation to the Ministry of Finance for ratification. After the government consents to the interest rate, the EPFO would now start crediting the rate of interest for the previous fiscal to the EPF subscribers.

“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 @ 8.15% for the year 2022-23 to the account of each member of the EPF Scheme as per the provisions under Para 60 of EPF Scheme, 1952,” the EPFO circular said.

This has been among the fastest approvals given by the Finance Ministry for the EPF interest rate. For 2021-22, the central government approved the interest rate on June 3 last year. However, the crucial part would be the time gap between the approval and the final crediting of the interest to member accounts. Last year, many EPF subscribers complained about the delay in crediting the interest rate despite an early nod in June. The Finance Ministry had then in October clarified that there is no loss of interest rate for subscribers of the EPFO and that the delay in crediting of interest rate for FY22 was due to the software upgrade for the tax tweaks introduced last year.

In March this year, the Central Board of Trustees (CBT) of the EPFO had recommended an interest rate of 8.15 per cent for its over 6 crore subscribers for the current financial year 2022-23, marginally higher than 8.1 per cent for the previous year. After the 8.15 per cent payout, the retirement fund body will be left with a surplus of Rs 663.91 crore, a statement released by the Ministry of Labour and Employment had then said.