The Employees’ Provident Fund Organization (EPFO) has set the interest rate on EPF accounts at 8.15 percent for the fiscal year 2022-23, up from 8.10 percent previously. The Union Ministry of Finance has announced an increase in the interest rate on provident fund payments. According to an EPFO notification, the Ministry of Labor and Employment, Government of India, has given the Central Government approval under Section 60 (1) of the Employees’ Provident Fund Scheme, 1952, to deposit interest in the accounts of each member of the EPF scheme for the fiscal year 2022-23.
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Today’s circular was issued
On Monday, July 24, a circular announcing a rise in interest rates on EPFO accounts was issued. Significantly, the Employees’ Provident Fund Organization’s Board of Directors set an interest rate of 8.15 percent on the EPF account for the fiscal year 2022-23 and submitted it to the Finance Ministry for approval. According to the information, interest money will begin to be credited to the account in August 2023.
In March, the EPFO board suggested
According to a circular released by the Employees’ Provident Fund Organisation, the board of directors proposed raising the interest rate from 8.10% to 8.15% in March of this year. According to sources, the Finance Ministry notifies the interest rate after the CBT’s decision, and only then can it be credited to EPFO members’ accounts. The Finance Ministry usually announces the interest rate in the first quarter of the fiscal year, and clients were waiting for the announcement for FY23.
The interest rate had dropped to its lowest level in 40 years.
Significantly, EPFO has set the interest rate for EPF Accounts at 8.10 percent for the fiscal year 2021-22. This is the lowest rate in nearly 40 years. In 1977-78, the EPFO set an interest rate of 8%. However, it has been consistently at or above 8.25 percent since then. 8.65 percent was available in the fiscal year 2018-19, 8.55 percent in 2017-18, 8.65 percent in 2016-17, and 8.8 percent in 2015-16.
Deductions from an employee’s pay
A 12% deduction from an employee’s income is for an EPF account. The EPS (Employee Pension Scheme) receives 8.33 percent of the employer’s deduction from the employee’s pay, whereas the EPF receives 3.67 percent. You may easily check the current balance of your PF account while sitting at home. There are numerous alternatives for this. You can find out by using the Umang app, website, or sending an SMS from your phone. There are around 6.5 crore EPFO customers in the country.