New Delhi. Recently, giving a big gift to the subscribers of Employees Provident Fund Organization (EPFO), the government has increased the interest rate on deposits in PF account by 0.05 percent. According to the circular issued on July 24, 2023, the interest rate on deposits in PF account has been increased from 8.10 per cent to 8.15 per cent for the financial year 2022-23.
Significantly, the EPFO board had fixed the interest rate of 8.15 per cent on the EPF account in March for the financial year 2022-23. The EPFO board had sent this proposal to the finance ministry for approval. Now it has been approved.
The interest rate had reached the lowest level in 40 years for 2021-22.
For the financial year 2021-22, the government had approved the lowest interest rate of 4 decades on EPF deposits at 8.1 percent. 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.
At what rate interest has been received on PF in the last 6 financial years.
8.65 per cent in 2016-17 8.55 per cent
in 2017-18 8.65 per cent
in 2018-19 8.50 per cent
in 2019-20 8.50 per cent
8.10 per cent in 2021-22
8.15 per cent in 2022-23
What is Provident Fund
Significantly, EPFO has been created by the government to handle the Employee Provident Fund (EPF). This institution takes care and safeguards the money of the fund. EPF is a scheme in which an employee deposits some part of his salary. This money is deposited in his provident fund ie for further expenses. For employed people, EPF money is their lifetime earnings. Withdraws the money deposited in this scheme after retirement. In certain circumstances, money can be withdrawn even earlier.