EPFO marginally raises PF interest rate to 8.15 percent

New Delhi: The Central Board of Trustees of the Employees Provident Fund Organisation (EPFO) on Tuesday recommended 8.15 percent interest for this financial year, compared to 8.1 percent paid to its six crore active subscribers last year.

The rate proposed by the Board, headed by Labour Minister Bhupender Yadav, will leave a surplus of Rs. 664 crore, as against Rs. 450 crore last year. EPFO’s income projection showed that it would have had a surplus of Rs.113 crore by offering 8.2 percent this year but would have been staring at a Rs. 438 crore deficit had an interest of 8.25 percent been proposed. The social security organisation is expected to distribute Rs. 90,000 crore this year to its members’ accounts. The expected surplus this year is likely to be about Rs. 660 crore.

The interest rate declared by EPFO will also apply to Voluntary Provident Fund (VPF) deposits. Employees whose EPF accounts are with an exempted trust will also receive 8.15 per cent interest rate on their EPF deposits in FY23. The interest rates are fixed by EPFO based on earnings of the retirement fund body on the deposits it has and the investment it has made in various instruments.

This post was published on March 29, 2023 7:47 pm