Last Update: February 21, 2023, 14:37 IST
The government may increase the interest rate on PF deposits to around 8% for 2022-2023.
As reported by The Economic Times, the government may fix the interest rate on provident fund deposits at around 8% for 2022-2023.
The Central Board of Trustees of the Employees’ Provident Fund Organization (EPFO) will soon decide on the provident fund (PF) interest rates for the financial year 2022-23. As reported by an English daily, the meeting is expected to take place later this month or early March to consider PF interest rates. As of now, the interest rates are recommended by the Finance Investment and Audit Committee. The Central Board of Trustees has to take a decision on their recommendations.
As per the Economic Times report, the government may fix the interest rate on PF deposits at around 8% for 2022-2023. This is similar to the previous financial year. The government approved an interest rate of only 8.1% on EPF deposits for the financial year 2021-2022 – the lowest in four decades. The Central Board of Trustees fixed the interest rate on EPF deposits at 8.5% in March 2021 for the financial year 2020-2021.
Here is the PF interest rate and its year:
In 2016-2017, the Central Board of Trustees pegged the PF interest rates at 8.65%. After a decline of 8.55% in 2017-2018 and then an increase of 8.65% in 2018-19. After 2019, the interest rates figures were 8.50% in 2019-20, 8.50% in 2020-21 and 8.10% in 2021-22.
The Central Board of Trustees has raised the issue of non-receipt of EPF interest for the year 2021-22. The EPF for the year 2021- 22 was approved in June 2022. In March 2022, the EPFO Board of Trustees, consisting of representatives from both employers and employees and chaired by Union Labor Minister Bhupendra Yadav, approved an interest rate of 8.1%. For the financial year 2021-2022. The interest has not been credited yet, even though it was finalized in June 2022.
According to PTI, according to Harbhajan Singh Sidhu, General Secretary of Hind Mazdoor Sabha, this matter was raised about ten days back. Speaking to news agency PTI, Harbhajan said, “They informed me that the system (software) problem would be rectified soon. It should not happen. Despite the interest rates being approved in March and June, the employees have not got the benefit. According to AK Padmanabhan – an additional EPFO trustee who represents the Center of Indian Trade Unions (CITU) – there is no reason for this. He said that he would take up the matter in the upcoming meeting of the Central Board of Trustees. Employers’ representative trustee KE Raghunathan had also noticed the problem and raised it with EPFO officials. The EPFO agreed to reduce the interest on provident fund deposits for 2021-2022 to 8.1 per cent from the existing 8.5 per cent introduced in March last year for 2020-2021.
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