While Employees provident fund (EPF) subscribers are eagerly waiting to get interest credited in their accounts, they are apprised of the fact that the interest for a financial year is credited only after the CBT’s decision is given the nod from the ministry of finance.
On May 8, EPFO tweeted from its official handle stating that the Central board of Trustees (CBT) have recommended 8.15 percent annual interest on EPF accumulations for the FY 2022-23. And the rate of interest would be credited only after ministry of finance gives its nod.
However, it doesn’t imply that as soon as the finance ministry gives its approval, its five crore subscribers will promptly receive their due of interest.
It is vital to mention here that the delays were reported in crediting of interest for 2021-22 as well. As late as in February 2023, a number of subscribers reported that they did not receive their interest for the preceding year.
In October 2022, Finance Minister Nirmala Sitharaman had attributed the delay to a software upgrade and assured that the credits will be visible soon. But the problem persisted till early this year.
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EPFO credits the interest after what is announced by the board of trustees is ratified by the government through the finance ministry.
The 8.5 per cent interest rate on EPF deposits for 2020-21 was decided by CBT in March 2021.
In March 2020, EPFO had lowered the interest rate on provident fund deposits to a seven-year low of 8.5 per cent for 2019-20, from 8.65 per cent provided for 2018-19.
EPFO had provided 8.65 per cent interest rate to its subscribers in 2016-17 and 8.55 per cent in 2017-18. The rate of interest was slightly higher at 8.8 per cent in 2015-16.
The retirement fund body had given 8.75 per cent rate of interest in 2013-14 as well as 2014-15, higher than 8.5 per cent for 2012-13. The rate of interest was 8.25 per cent in 2011-12.