Finance

Published: Mar 30, 2023
Updated: Mar 30, 2023

EPFO Raises Interest Rates to 8.15% for FY23, Reversing a Four-Decade Low

The Employees' Provident Fund Organisation (EPFO) has announced that it will raise the interest rate on employees' provident fund (EPF) deposits to 8.15% for the financial year 2022-23. This decision comes after the interest rate was lowered to a four-decade low of 8.1% in March 2022, down from 8.5% in 2020-21. The EPFO currently has over 50 million subscribers, and the interest rate decision will need to be ratified by the Ministry of Finance before being credited to subscribers' accounts.

EPFO Increases Interest Rate for FY23

The EPFO has fixed the interest rate on EPF deposits at 8.15% for the financial year 2022- 23. This decision comes after the EPFO lowered the interest rate to a four-decade low of 8.1% in March 2022, down from 8.5% in 2020-21.

Previous Years' Interest Rates

In the financial year 2017, the EPFO provided an interest rate of 8.65% to its subscribers, followed by 8.55% in FY18. The rate of interest was slightly higher at 8.8% in FY16. In FY14 and FY15, the EPFO gave a rate of interest of 8.75%, which was higher than 8.5% for FY13. The rate of interest was 8.25% in FY12.

EPFO's Subscriber Base

The EPFO currently has over 50 million subscribers, making it one of the largest retirement fund bodies in India. The EPFO's decision to raise the interest rate will benefit its subscribers, who will receive higher returns on their EPF deposits.

Ratification by the Ministry of Finance

The EPFO's decision to raise the interest rate on EPF deposits for the financial year 2022-23 will need to be ratified by the Ministry of Finance before it can be credited to subscribers' accounts. Once the government ratifies the decision, the EPFO will credit the interest rate to the accounts of over five crore subscribers.

The EPFO's decision to raise the interest rate on EPF deposits for the financial year 2022-23 is a positive development for its subscribers, who will benefit from higher returns on their investments. The decision will need to be ratified by the Ministry of Finance before it can be credited to subscribers' accounts.