EPFO gave good news to its about five crore holders, increased interest rate on provident fund deposits. Loktej Business, Feature News
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After the EPFO reduced the interest rate on EPF for 2021-22 to a four-decade low of 8.1 percent for its nearly five crore shareholders in March 2022, the Employees’ Provident Fund Organization (EPFO) in its meeting on Tuesday decided on the Employees’ Provident Fund. While changing the interest rates for 2022-23, the interest rate has been fixed at 8.15 percent. It was 8.5 percent in 2020-21. EPF deposits after CBT’s decision After the CBT’s decision, the interest rate on EPF deposits for 2022-23 will be sent to the Finance Ministry for concurrence. After getting approval from the government, the interest on deposits in EPFO for the year 2022-23 will be deposited in the accounts of more than five crore consumers.
EPFO has decided to increase the interest rates
Let us tell you that the Central Board of Trustees (CBT), the apex body of the Employees’ Provident Fund Organization, has decided to do so in its meeting on Tuesday. Talking about last year, in March 2020, EPFO reduced the interest rate on provident fund deposits for 2019-20 to 8.5 percent, which was at a seven-year low.
How is the interest rate determined?
If we talk about how the Employees’ Provident Fund Organization gives interest to its account holders, then tell that it gives a part of the earnings earned by investing the money deposited in Provident Fund accounts at many places to the consumer in the form of interest. EPFO invests 85% of its total investment in debt options. The remaining 15% is invested in equity shares. PF interest is determined on the basis of earnings on these investments.
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