The employees provident fund (EPF) scheme received a significant announcement from the union government of India on July 24, 2023. For the fiscal year 2022-2023, it has decided to increase the interest rate on deposits to 8.15%. More than 6 crore subscribers will benefit from this increase in interest rates during the current fiscal year, which is fantastic news.
The employees’ provident fund organization’s (EPFO) central board of trustees (CBT) initially recommended making the decision to increase the interest rate. According to the circular published on July 24, 2023, the Ministry of Labour and Employment conveyed its approval of the higher EPF interest rate in response to the CBT’s recommendations. The EPFO has already told its field offices to credit the 8.15% interest for FY23 to the accounts of EPF members.
The CBT deliberates on important issues, like the interest rate, as part of the EPFO’s decision-making process based on the anticipated income of the retirement fund manager.
On March 28, 2023, the EPFO recommended raising the interest rate for FY23 to 8.15%. With the finance ministry’s blessing, it can now move forward with crediting interest to its subscribers’ accounts.
The EPFO rate continues to be among the highest when compared to other savings options, with small savings rates ranging from 4.0% to 8.2%.