New Delhi: The Ministry of Labour and Employment stated on Tuesday that the interest rate for EPFO has been raised to 8.15 per cent.
The rate went up from 8.1 per cent of the last financial year which was the lowest in 40 years.
"The interest rate would be officially notified in the government gazette after approval of Ministry of Finance, following which EPFO would credit the rate of interest into its subscribers' accounts," the Ministry of Labour and Employment reportedly said.
The interest rate for 2022-23 has been revised upwards after a meeting between the labour ministry and the central board of trustees of the Employees' Provident Fund Organisation (EPFO), according to NDTV.
"The recommended rate of interest of 8.15% safeguards the surplus as well as guarantees increased income to members," the labour ministry added.
"The Board's recommendation involves distribution of more than ₹ 90,000 crores in the members' account on the total principal amount of about ₹ 11 lakh crores which was ₹ 77,424.84 crores and ₹ 9.56 lakh crores respectively in the FY 2021-22. The total income recommended for being distributed is highest till date.” It stated further.
The ministry also said that ‘the growth in income and the principal amount is respectively more than 16% and 15% as compared to last financial year 2021-22.’
EPFO in March 2020 reduced the interest rate on provident fund deposits to 8.5 per cent for 2019-20 from 8.65 per cent in 2018-19.