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The Central government has ratified the Employees’ Provident Fund Organisation’s (EPFO) decision of March 28 to set the interest rate at 8.15 per cent for 2022-23 in respect of the provident fund accumulations in members accounts.
This would now lead to distribution of more than ₹90,000 crore in the five crore members’ accounts on the total principal amount of about ₹11 lakh crore, which was ₹77,424.84 crore and ₹9.56 lakh crore respectively in the FY 2021-22.
An EPFO order issued on Monday said that the Labour Ministry has conveyed the approval of the Central Government under Para 60(1) of the Employees Provident Fund Scheme 1952 to credit interest at 8.15 per cent for the year 2022-23.
The total income recommended for being distributed for 2022-23 is the highest till date. The growth in income and the principal amount is more than 16% and 15% respectively as compared to last financial year 2021-22.
- Also read: EPFO: How to view EPF passbook online?
EPFO, over the years, has been able to distribute higher income to its members, through various economic cycles with minimal credit risk.
Considering the credit profile of the EPFO investment, the interest rate of EPFO is higher than other comparable investment avenues.
It may be recalled that EPFO had in March 2022 lowered the rate on the fund for 2021-22 to an over four-decade low of 8.1 per cent for its nearly five crore subscribers from a level of 8.5 per cent in 2020-21.
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