Govt Okays 8.15% Interest Rate For EPFO For FY 2022-23

The government has okayed interest rate of 8.15% to the Employees' Provident Fund (EPF) scheme for 2022-23. According to an Employees' Provident Fund Organisation (EPFO) office order issued today (July 24, 2023), the Union Ministry for Labour and Employment has conveyed approval of the central government to credit interest at the rate of 8.15% per annum for 2021-22 to all members of the EPF scheme.

As per a circular by the Employees' Provident Fund Organisation (EPFO), "The Ministry of Labour and Employment, Government of India, has conveyed the approval of the Central Government under para 60 (1) of Employees' Provident Fund Scheme, 1952 to credit interest for the year 2022-23 to the account of each member of the EPF Scheme as per the provisions under Para 60 of EPF Scheme, 1952."

Earlier this year in March, the Central Board of Trustees (CBT) of the EPFO recommended an interest rate of 8.15% for its more than 6 crore subscribers for the present financial year 2022-23, a little higher than 8.1% for the previous year. After the 8.15% payout, the retirement fund body shall be left with a surplus of Rs 663.91 crore, as per the statement issued by the Ministry of Labour and Employment.

The Employees' Provident Fund came into existence with the promulgation of the Employees' Provident Fund Ordinance on November 15, 1951. It was replaced by the Employees' Provident Funds Act, 1952. The EPFO is under the administrative control of Ministry of Labour and Employment, Government of India.

The Employees Provident Fund remains a must contribution for all salaried employees. An employer is also supposed to make the similar contribution to the EPF account. An employee makes 12% of his salary contribution to the EPF account every month. Employees' full contribution is deposited to the EPF account.