There is good news for the employees. Actually the amount of interest rate on their provident fund deposits has been increased by EPFO. Significant changes have been made in the amount of interest rate for the financial year 2022-23. Along with this, 5 crore employee shareholders will get the benefit of the increased amount. It will soon be sent to the Finance Ministry for approval by the CBT.
Employees EPFO ​​Interest Rate Hike: There is great news for the employees and shareholders. Actually once again the amount of interest rate on their provident fund has been increased. Earlier the amount of interest rate for 2021-22 was 8.10. Which has been extended once again. At the same time, this decision taken by the CBT for the financial year 2022-23 will be sent to the Ministry of Finance.
Increase in amount of interest rate
The important decision was taken by the Employees’ Provident Fund Organization in its meeting on Tuesday. In which the amount of interest rate on Employees Provident Fund has been fixed. The interest rate has been increased to 8.15% for 2022 -23. The important decision was taken by the Central Board of Trustees, the apex decision-making body of the Employees’ Provident Fund Organisation, in its meeting on Tuesday.
In which it was said that the interest on PF has been kept at 8.15% for 2022-23. The same will send the interest rate on EPF deposits for 2022-23 to the Finance Ministry for concurrence after the decision of the IPS Deposit Committee after the decision of the CBT.
Benefits to more than 5 crore consumers
With the approval of the same government, the interest on the amount deposited in EPFO ​​for the year 2022-23 will be deposited in the account of more than 5 crore consumers. Earlier, a meeting of the EPF board was held on March 27 and 28 to discuss the interest rate and annual financial projections for the pension FY 2023 linked to higher salaries.
According to the information, about 6 crore active EPFO ​​​​subscribers will be benefited by the decision of CBT. Of these, 72.73 lakh pensioners have been recorded in FY 2022. Explain that for the financial year 2023, the interest rate of IPS was expected to be 8%. The interest rate recommended by the CBT last March was 8.1%. Which was approved by the Ministry of Finance in June 2022.
Interest rate on PF
Earlier in March 2022, the interest rate on PF was reduced to 8.1% in 2021-22 by EPFO ​​for its 5 crore shareholders. It was recorded at the lowest level in the last four decades. Earlier in 2020-21 the interest rate was 8.5% whereas in 77-78 it was the lowest recorded 8%.
The interest rate for 2018-19 was 8.65% while for 2016-17 the interest rate at the rate of 8.65% was being provided by EPF to the subscribers. The interest rate for 2017-18 was recorded at 8.55% while for 2015-16 the interest rate was recorded at 8.8%. The interest rate for 2013-14 and 2014-15 was recorded at 8.75%.
EPF’s big decision on higher pension option
Earlier, a big decision was also taken by EPF on higher pension option. Following the Supreme Court order, a detailed discussion was held for the subscribers on their pension options in the CBT. EPF has allowed the employee to opt for salary linked higher pension till May 3. The option is being seen as a solution to two issues.
The benefit of higher pension will be given to the pensioners as the number of pensioners progressively increases and the difference between the net present value of the applicable including contribution.
