The meeting of CBT i.e. Central Board of Trustees of Employees Provident Fund Organization (EPFO) is going to be held on March 25-26 to fix the interest rate on PF for the current financial year 2022-23. The interest rates are decided every year during the board meeting in March.
The interest rate that was fixed for the last financial year i.e. 2021-22 was the lowest in 43 years. Last year, the interest rate on PF was reduced from 8.5 per cent to 8.1 per cent. There was no change in the rate of interest of PF in the financial year 2020-21. Just a year before this, the interest rate was reduced from 8.65 per cent to 8.5 per cent in 2019-20.
In March 2022, the CBDT i.e. Central Board of Trustees had recommended an interest rate of 8.1 per cent for over 6 crore active subscribers of EPFO for the financial year 2021-22, leaving an estimated surplus of Rs 450 crore. According to sources, EPFO can retain the current interest rate of 8.1 per cent. This can be done keeping in mind the potential for higher returns in equity investments.
