The EPFO (Employees' Provident Fund Organization) has set the interest rate on employees' provident fund for 2022-23 at 8.15 per cent, according to sources. This rate is an increase from last year's rate of 8.1 per cent, which was the lowest in four decades. The decision was made by the EPFO's apex decision-making body, the Central Board of Trustees (CBT), during its meeting on Tuesday. However, the rate of interest will only be officially declared after it is ratified by the finance ministry.
The EPFO reduced the interest rate on provident fund deposits in March 2020 from the 8.65 per cent offered in 2018–19 to a seven-year low of 8.5 per cent for 2019–20. 8.8 percent was the percentage in 2015–16, and 8.75 percent was the figure in 2013–14 and 2014–15. In 2011–12, the interest rate was 8.25 percent.
The EPFO provided a status report on the execution of the Supreme Court's higher pension ruling from November 4, 2022 during the CBT meeting. The report gave the assurance that the ruling will be fully implemented. Although the deadline for applications was extended to May 3, the EPFO has yet to provide a thorough justification or clarify the deposit or pension computation.
According to a report from the standing committee on labor, the Ministry of Labor informed the House panel that the implications of the judgment had not been factored into the BE 2023-24 allocation. The EPFO had decided to issue a set of FAQs to clarify the judgment's implications on pensioners in its meeting of the Pension Implementation and EDLI Committee (PIEC) on March 15.
The EPFO is a retirement fund body that administers the Employees' Provident Fund and Pension Scheme for employees in India. The fund is managed by the Ministry of Labor and Employment, and its objective is to provide social security to workers in the organized sector. The EPF scheme allows workers to save a portion of their salary during their working years, and this amount, along with the employer's contribution, is paid out to the employee after retirement.
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