The retirement fund physique Employee Provident Fund Organisation (EPFO) on Tuesday barely elevated the interest rate to 8.15 per cent on the workers’ provident fund for 2022-23.
The determination was taken by EPFO’s board of trustees. Last year, EPFO had declared 8.1 per cent because the rate of interest for 2021-22, which was the bottom in 40 years. The last time the interest rate had slipped to 8 per cent was in 1977-78.
Subsequent to the CBT determination, the interest rate on EPF deposits for 2022-23 will likely be despatched to the finance ministry.
The CBT, which is chaired by the Union Labour Minister and contains representatives from each the enterprise and worker sides, determines the interest rate proposal. The Finance Ministry then confirms the advice.
In March 2020, EPFO had 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 supplied for 2018-19.
The EPFO stored the interest rate on PF deposits at 8.5 p.c for 2020-21, the identical as in 2019-20, regardless of important withdrawals because of Covid’s impression on individuals’s monetary assets.
Following the Covid-19 pandemic, the retirement fund physique confronted giant withdrawals and lesser contributions. The EPFO had cleared 56.79 lakh claims value Rs 14,310.21 crore below the advance facility as of December 31, 2021.