The Government is most likely to set the PF deposit rates at 8 per cent for the financial year 2023, which is reported to be the same as the previous year, as per the ET reported while quoting people familiar with the matter. “Though the EPFO is being worked out, 8 per cent was doable considering higher returns on investments this year,” said the ET reports.
PF Deposit Interest Rate to be set at 8%, CBT to Conduct a Meet This Month
To decide upon the final interest rate, the EPFO’s central board of trustees (CBT) is likely to hold a meeting either at the end of this month or in the first week of March. At the meeting, the Finance Investment and Audit Committee will be assisting in the process by revealing earnings for 2022-2023.
Headed by the labour minister, “The CBT is a tripartite body of the EPFO involving government, workers and employers’ representatives and the decision of CBT is binding on EPFO,” said News18.
Previously for the year 2021-22, the Government decided to fix a four-decade low-interest rate of 8.1 per cent on the employee provident fund deposits. This was the lowest interest rate offered on EPF since 1977-1978 which was 8.0 per cent.
Earlier, for the year 2020-21 the Central Board of Trustees (CBT) decided to offer the 8.5 per cent interest rate on EPF.
“EPFO is a mandatory savings scheme under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. It is managed under the aegis of the Employees’ Provident Fund Organisation (EPFO). It covers every establishment in which 20 or more persons are employed. The employee has to pay a certain contribution towards the provident fund and the same amount is paid by the employer every month,” mentioned News18.
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“At the end of retirement or during the service (under some circumstances), the employee gets the lump sum amount including the interest on PF contributed which gets accrued. Nearly 4.9 crore new subscribers joined the Employees’ Provident Fund (EPF) scheme during September 2017 to November 2021 period, government data showed,” further explained.
