Goog News: EPF interest rate fixed at 8.15% by EPFO for FY 2022-23

The 233rd meeting of the EPF Central Board of Trustees was conducted today in Delhi, presided over by Shri Bhupendra Yadav, Union Minister for Labour and Employment as well as Environment, Forest, and Climate Change. Shri Rameshwar Teli, Union Minister of State for Labour and Employment, Petroleum and Natural Gas, and Ms. Arti Ahuja, Secretary Labour and Employment, as well as Member Secretary Smt. Neelam Shami Rao, Central P F Commissioner, presided over the meeting.

For the financial year 2022-23, the Central Board suggested an annual rate of interest of 8.15% on EPF accumulations in members’ accounts. Following clearance from the Ministry of Finance, the interest rate would be officially publicised in the government gazette, and EPFO would credit the rate of interest into the accounts of its subscribers.

To have safeguards, the CBT advised balancing both the growth and surplus funds.The recommended rate of interest of 8.15% protects the excess and ensures increased income for members. In fact, the interest rate is 8.15%, and the surplus is 663.91 crores, which is larger than the previous year.

The Board’s suggestion includes a distribution of more than Rs. 90,000 crores in the members’ account on a total principal amount of about Rs 11 lakh crores, which was Rs 77,424.84 crores and Rs 9.56 lakh crores in FY 2021-22. The overall income recommended for distribution is the largest to date. In comparison to the previous fiscal year 2021-22, income and principal have increased by more than 16% and 15%, respectively.

EPFO has been able to provide increasing income to its members over the years, despite multiple economic cycles, with minimum credit risk.

Given the EPFO investment’s credit rating, the interest rate is higher than other comparable investment options available to subscribers. EPFO has historically taken a responsible and balanced approach to investment, focusing on the safety and preservation of principal with a cautious and growth-oriented approach.

EPFO, as one of the largest social security organizations, has remained faithful to its goal by maintaining and supplying its subscribers with a high secured interest rate even during periods of volatility in the equities and capital markets. EPFO’s conservative yet progressive investment style has made it a sensible choice for PF participants.