EPFO : Now employees will get 8.15% interest on their EPF account. The Employees’ Provident Fund Organization (EPFO) in its meeting has fixed the interest rate at 8.15 per cent for the financial year 2022-23.
For 2021-22, the government had approved 8.1 per cent, the lowest interest rate in four decades on Employees’ Provident Fund deposits. However, now it has been increased by 0.05 percent.
EPFO increased interest on EPF
Employees’ Provident Fund Organization (EPFO) has increased the interest rate by 0.05 percent to 8.15 percent for the financial year 2022-23. It was earlier 8.10 percent. This is the first increase after FY19. In March 2022, the government had fixed the EPF rate at 8.1 per cent for over 6 crore active subscribers, the lowest since 1977-78.
CBT took the decision
The decision to hike interest rates on EPF was taken by the Central Board of Trustees (CBT) of EPFO in its meeting. After the support of the government, the interest rate on EPF for 2022-23 will be deposited in the accounts of more than five crore subscribers of EPFO. EPFO will give this interest rate only after its permission from the finance ministry of the government.
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EPF money is received on retirement
EPF is a compulsory savings scheme under the Employees’ Provident Fund Act, 1952. It is run by the Employees Provident Fund Organization (EPFO). It covers every single office, company where 20 or more people work. The employee has to pay a fixed contribution towards the provident fund and gets the money at the time of retirement. During September 2017 to November 2021, about 4.9 crore new employees are associated with EPF.