Giving a big gift to the Employees Provident Fund Organization (EPFO) subscribers, the government has increased the interest rate on deposits in the PF account by 0.05 percent. According to the circular issued on July 24, for the financial year 2022-23, the interest rate on deposits in PF account has been increased from 8.10% to 0.05% to 8.15%. This money will start reaching the accounts of 6.5 crore EPFO members of the country by August 2023.
Now more interest will be available on PF
The Board of Employees Provident Fund Organization had fixed the interest rate of 8.15 percent on EPF Account in March for the financial year 2022-23 and sent this proposal to the Ministry of Finance for approval. Now it has been approved and members will get 0.05 percent more interest than before on PF account. Significantly, for the financial year 2021-22, EPFO had fixed the interest rate for EPF Account at 8.10 percent.
This is the lowest interest rate in almost 40 years. In 1977-78, the EPFO had fixed an interest rate of 8 per cent. But since then it has been continuously at 8.25 per cent or more. In the financial year 2018-19, 8.65 percent, 8.55 percent in 2017-18, 8.65 percent in 2016-17 and 8.8 percent interest was available in the financial year 2015-16.
This is how PF is deducted from salary If
you look at the EPFO Act, 12 percent of the base pay and DA of any employee is deposited in the PF account. On this, the concerned company also deposits the same amount i.e. 12% in the PF account of the employee. However, out of the contribution made by the company, 3.67 per cent goes to the EPF account, while the remaining 8.33 per cent goes to the Pension Scheme.
How much will the account holders benefit?
Now let’s talk about the maths of PF, then tell that if you have a total deposit of Rs 10 lakh in your PF account till March 31, 2023, then till now you used to get Rs 81,000 as interest at the rate of 8.10 per cent. On the other hand, now that the government has increased the PF interest rate to 8.15 percent, then according to this, the amount of interest on Rs 10 lakh deposited in the account will increase to Rs 81,500. That is, you will get a direct profit of Rs 500 on a deposit of Rs 10 lakh.
Now suppose an amount of Rs 5 lakh is deposited in the account of an employee, then according to the new interest rate, he will get an interest of Rs 40,750. Which used to be Rs 40,500 earlier, ie a profit of Rs 250. On the other hand, an employee with a deposit of Rs 3 lakh will get an interest of Rs 24,450.
Significantly, in a notification issued by the Employees’ Provident Fund Organization (EPFO), it has been said that the Ministry of Labor and Employment, Government of India, has given approval under Para 60 (1) of the Employees’ Provident Fund Scheme, 1952, to deposit interest in the account of each member of the EPF scheme for the year 2022-23.
Check balance easily sitting at home
You can check the current balance of your PF account in easy ways sitting at home. Many options have been given for this. You can find out through the Umang app, website or by sending an SMS from your mobile phone. You can check your balance by following these easy steps.
- Go to the official website of EPFO (www.epfindia.gov.in).
- After this click on the E-PassBook option.
- On the new page, enter UAN, password and captcha code and click on login.
- After logging in, select the Member ID option to view the passbook.
- Now you will get the passbook in PDF format, which can be downloaded.
- You can also view the passbook directly by visiting https://passbook.epfindia.gov.in/.
- Now the complete information will be open in front of you.