Centre approves 8.15% interest for 60 million EPFO subscribers in FY23

FY23 interest rate is marginally higher than 8.1% for FY22. After the 8.15% payout, EPFO will be left with a surplus of Rs 663.91 cr

The labour ministry has, in a circular issued on Monday, approved an interest rate of 8.15 per cent to be credited into the accounts of nearly 60 million Employees’ Provident Fund Organisation (EPFO) subscribers for the fiscal year 2023.

"The Ministry of Labour and Employment, Government of India, has conveyed the approval of the Central Government under para 60(1) of Employees' Provident Fund Scheme, 1952 to credit interest at 8.15 per cent for the year 2022-23 to the account of each member of the EPF Scheme as per the provisions under Para 60 of EPF Scheme, 1952. You are accordingly requested to issue necessary instructions to all concerned for crediting the said interest to the members' accounts," the circular said.

Earlier in late March, the Central Board of Trustees (CBT) of the EPFO had approved an interest rate for the financial year 2022-23, which was marginally higher than 8.1 per cent for the previous fiscal year. After the 8.15 per cent payout, the retirement fund body will be left with a surplus of Rs 663.91 crore, a statement released by the labour ministry had then said.

Also Read: New formal job creation at 4-month high in April, shows EPFO data

According to convention, the Ministry of Labour and Employment had sent the interest rate recommendation to the Ministry of Finance for ratification. After the government’s consent to the interest rate, the EPFO would now start crediting the rate of interest for the previous fiscal to the EPF subscribers.

The interest rate which is the second lowest in over four decades was announced after the EPFO registered a deficit of around Rs 197 crore in 2021-22 against an estimated surplus of Rs 350-400 crore for 2021-22 when an 8.1 per cent interest rate was recommended for the year in March 2022. The 8.1 per cent rate for 2021-22, ratified by the Finance Ministry in June 2022, was the lowest in four decades.

Also Read: Fresh Formal job creation slows down in May, shows EPFO data