On July 24, 2023, the Centre officially approved the 8.15 per cent interest rate on deposits made under the Employees' Provident Fund Organisation (EPFO) scheme for the financial year 2022-23. This increase was initially announced by the EPFO on March 28 this year, thus, benefiting over six crore subscribers.
As part of the standard procedure, the Labour Ministry forwards the interest rate recommendations to the Finance Ministry for formal ratification. The EPFO has issued instructions to its filed offices, requesting them to credit the interest at the hiked rate on EPF for the financial year 2022-23 into the accounts of its members (aka EPF subscribers) for the financial year 2022-23.
The directive was issued after the finance ministry’s agreement with the EPFO trustees’ approved rate of interest earlier in March this year.
In March 2022, the EPFO decreased the interest rate on EPF deposits for the financial year 2021-22 to a four-decade low of 8.10 per cent, down from 8.5 per cent in 2020-21. This marked the lowest interest rate since 1977-78 when the EPF interest rate was recorded at eight per cent.