EPFO Interest Rate: For the financial year 2022-23, the interest of Provident Fund can be finalized. A decision on this can be taken by the end of June. According to sources related to EPFO, a draft has been prepared by the Labor Ministry and sent to the Finance Ministry.
Great news related to EPF account is coming for the employed. Soon the Finance Ministry can announce it. For the financial year 2022-23, the interest of Provident Fund can be finalized. A decision on this can be taken by the end of June.
According to sources related to EPFO, a draft has been prepared by the Labor Ministry and sent to the Finance Ministry. Now approval is yet to be received from the Finance Ministry. As soon as approval is received, it will be notified. This process is expected to be completed by July. Let us tell you, the Labor Ministry has fixed 8.15 percent on EPF for the financial year 2022-23.
When will I get the interest money?
Like every year, the Central Board of Trustees (CBT) of EPFO decides the interest for the previous financial year. Usually this meeting takes place in March. In this, considering the earnings of the whole year, it is decided that how much interest should be given. For the last year, it was decided in the meeting held in March 2023.
The board increased the interest rates. After this, it is the job of the Labor Ministry to prepare its draft. The Labor Ministry sends it to the Finance Ministry for approval. It is notified only after the approval of the Finance Ministry. It is expected that soon approval can be received from the Ministry of Finance on the interest for the financial year 2022-23. If everything goes well then by November-December this year it will be credited after completing all the formalities.
How much increased interest on EPF?
If sources in the Labor Ministry are to be believed, the draft has been prepared and sent in May itself. Usually by the end of June, approval is received from the Ministry of Finance. The EPF interest rate has been fixed for the financial year 2022-23. It was increased by 5 basis points as compared to the previous financial year. However, before that it was 8.50 percent. Let us tell you, 12 percent of the basic salary of the employed person is deposited in the EPF account. The same share is also from the side of the employer.
How is it decided how much interest will be received?
The interest rates for the financial year 2022-23 were fixed in the CBT meeting held on 25 and 26 March. Interest rates are decided every year during the board meeting in March. Last year has been very good for EPFO in terms of earnings. Earnings have increased. This was the reason that the interest rates were increased, albeit marginally. Employees Provident Fund Organization invests your money in many places. He gets a return on this. Interest is received on the investment only through this earning.
Where is the money deposited in EPFO put?
Employees’ Provident Fund Organization (EPFO) invests your money deposited in Provident Fund accounts (EPF account) in many places. A part of the earnings from this investment is given to you in the form of interest. EPFO invests 85% of the total deposits in debt options. These include government securities and bonds. There is a total investment of more than Rs 36,000 crore in this. The remaining 15% is invested in ETFs (Nifty & Sensex). PF interest is decided on the basis of earnings from debt and equity.