Centre hikes interest rate on provident fund from 8.10% to 8.15% for 2022-’23
Last year, the government had reduced the interest rate from 8.50% to 8.10%.
The Union government on Friday marginally increased the interest rate on employees’ provident fund deposits from 8.10% to 8.15% for 2022-’23, PTI reported.
Last year, the government had reduced the interest rate on employees’ provident fund deposits from 8.50% to 8.10%. This was the lowest since 1977-’78, when the interest rate was 8%.
On Friday, the Employees’ Provident Fund Organisation, or EPFO, issued a notification stating that the Union Ministry of Labour and Employment has conveyed the Centre’s approval for the interest rate.
The EPFO is a government body that manages the country’s largest retirement fund with nearly six crore active subscribers.
Provident fund accounts are mandatory for workers earning up to Rs 15,000 a month in companies with more than 20 employees. At least 12% of an employee’s basic salary is compulsorily deducted to be deposited in the provident fund, while the employer also contributes the same amount.
EPFO’s Central Board of Trustees had proposed marginally increasing the interest rate on March 12, according to PTI.
The Central Board of Trustees is a tripartite body, headed by the labour minister and comprises representatives from the government, trade unions and employers.