EPFO fixes 8.15% interest rate on provident fund for 2022-23

Retirement fund body EPFO (Employees' Provident Fund Organisation) fixed 8.15 per cent  rate of interest on employees' provident fund (EPF) deposits for 2022-23 at its  meeting today.In March 2022, EPFO had lowered the interest on EPF for 2021-22 to an over four-decade low of 8.1 per cent for its about five crore subscribers, from 8.5 per cent in 2020-21.

This was the lowest since 1977-78, when the EPF interest rate stood at 8 per cent. The Employees' Provident Fund Organisation's apex decision-making body Central Board of Trustees (CBT) has decided to provide 8.15 per cent rate of interest on EPF for 2022-23 at its meeting on Tuesday," a source said.The 8.5 per cent interest rate on EPF deposits for 2020-21 was decided by CBT in March 2021. 

According to EPFO rules, at least 12% of an employee’s basic salary is compulsorily deducted to be saved in the provident fund, while an employer co-contributes another 12%.The Covid pandemic pressured the EPFO’s earnings. The EPFO delayed payments for 2019-20. This was paid in two instalments deriving from two sources of the EPFO’s investments: 8.15% from debt investments and 0.35% from the equity portfolio.