NEW DELHI: Employees’ Provident Fund Organisation has decided to suggestion for a minor increment in the interest rates for the current financial year. Meaning that an additional 0.05% interest will be given on the provident fund deposits for the financial year 2022-23.
The Central Board of Trustees of the Employees’ Provident Fund Organisation had a two-day meeting, which came to an end on Tuesday. Following this, the Board has decided to recommend an increment of 0.05% in the interest rates for the Provident Fund deposits for 2022-23. This brings the applicable rate to 8.15%
The Union Cabinet Minister of Labour and Employment, Bhupendra Yadav made the announcement regarding this increment after the meeting. An official statement said that these new interest rates will be officially notified in the government gazette soon after the official approval by the Ministry of Finance. The Employees Provident Fund Organisation will credit the interest amounts to the accounts of the subscribers.
“The CBT recommended the amount balancing both the growth and surplus fund to have safeguards. The recommended rate of interest of 8.15% safeguards the surplus as well as guarantees increase income to members. In fact, the rate of interest at 8.15% and the surplus of Rs 663.91 cr is higher than the last year,” the official statement mentioned.
The Labour Ministry also mentioned that this decision will involve the distribution of more than Rs 90000 cr in the accounts. The total principal amount with the Employees’ Provident Fund Organisation is Rs 11 lakh cr. In the previous financial year, the principal amount of Rs 9.56 lakh cr generated a total interest of Rs 77424.84 Cr.
The central government has been maintaining the interest rates for the Employees’ Provident Fund Organisation higher than the other comparable investment avenues available to the subscribers.
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