Union government approves 8.15% interest rate for PF deposits

The government has ratified the rate of interest at 8.15% rate on deposits under the Employees Provident Fund scheme for the financial year 2022-23.

The Centre on July 24 accepted the recommendation of the Central Board of Trustees (CBT) of the Employees’ Provident Fund Organisation (EPFO) to increase the interest rate of deposits in Provident Fund (PF) to 8.15%.

The new rate will be applicable for this financial year. The CBT had recommended an increase to 8.15% from 8.10% interest to the deposits on March 28, 2023. The EPFO, through an official order, has instructed its field offices to credit the interest into the accounts of members.

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The Labour Ministry had forwarded the CBT’s recommendation for the Union Finance Ministry’s approval. After the approval, the interest now will be credited to the accounts of subscribers. Last financial year, trade unions had complained delay in crediting the interest into the accounts of employees. The EPFO had cited technical reasons for the delay.

The trade unions had also complained that the rate of 8.10% was the lowest in recent past and had demanded an increase. The Centre has been maintaining that it is the highest rate for any small saving schemes, but agreed to the proposal of raising it to 8.15%. In 2020-21, the rate was 8.5%.