EPF to get 8.15% interest in the year 2022-23
The government has increased the interest rate on deposits in Employees’ Provident Fund (EPF) account by 0.05% from 8.10% to 8.15% for the financial year 2022-23. Employees Provident Fund Organization (EPFO) issued its office order on Tuesday. For the financial year 2021-22, the government had reduced the interest rate on EPF to 8.10%, which was the lowest level in 43 years. About 6 crore employees of the country come under the ambit of the investment scheme.
The Central Board Trustees (CBT) EPF recommends 8.15 % rate of interest to EPF subscribers for FY2022-23.
👉 https://t.co/lXupEKUbFb#AmritMahotsav #EPFOwithyou #epf #EPFO @PMOIndia @byadavbjp @Rameswar_Teli @LabourMinistry @PIB_India @MIB_India @AmritMahotsav
— EPFO (@socialepfo) March 28, 2023
How much more interest will be available now
Under the EPFO Act, 12% of the basic salary plus DA of the employee goes to the PF account. So at the same time, the company also contributes 12% of the employee’s basic salary plus DA. Out of the 12% contribution of the company, 3.67% goes to the EPF account and the remaining 8.33% goes to the pension scheme. All the money of the same employee’s contribution goes to the EPF account.
In such a situation, suppose that till March 31, 2023 (opening balance for the financial year 2023-24), a total of Rs 5 lakh is deposited in your EPF account. In such a situation, if you get interest at the rate of 8.10%, then you get 40,500 rupees as interest on 5 lakhs. But now after increasing the interest rate to 8.15%, you will get an interest of Rs 40,750.
Started in 1952 with 3% interest
In 1952, the interest rate on EPF was only 3%. However, after that it kept on increasing. For the first time in 1972, it reached above 6%. In 1984, it reached above 10% for the first time. The best time for PF holders was from 1989 to 1999.
During this, 12% interest was available on EPF. After this the interest rate started declining. Interest rates have never been close to 10% since 1999. It has remained below 9.50% since 2001. It has been 8.50% or less for the last seven years.
