Crores of employed people may get a shock soon. There may be a reduction in the interest rates on PF (PF Interest Credit) received by the employees. According to the news, the government can keep the interest rate on PF deposits around 8 percent for the financial year 2022-23 (FY23). Explain that the central government had approved 8.1 percent interest rate on PF for 2021-22.
An ET report quoting people related to the matter said that the government may keep the interest rate on PF deposits around 8 per cent for the financial year 2022-23, which is almost equal to the previous financial year. It has been said that work is being done on the earnings of the Employees’ Provident Fund Organization (EPFO).
CBT meeting within a month
According to reports, the EPFO’s Central Board of Trustees (CBT) is expected to meet at the end of this month or in early March to decide on the interest rate. After this, on the basis of the earnings of 2022-23, it will be recommended by the Finance Investment and Audit Committee.
The interest rate had reached the lowest level in 4 decades for 2021-22. For the financial year 2021-22, the government had approved the lowest interest rate of 8.1 percent on EPF deposits in 4 decades. The 8.1 per cent interest rate on EPF was the lowest since 1977-78. The interest rate of 8.5 per cent on EPF deposits for the financial year 2020-21 was fixed by the Central Board of Trustees in March 2021.
What is CBT
CBT is a tripartite body of EPFO consisting of representatives of Government, Employees and Employers and the decision of CBT is binding on EPFO. It is headed by the Labor Minister.