CBT recommends 8.15 % rate of interest to EPF subscribers
New Delhi: The Central Board of Trustees of Employees’ Provident Fund (EPF) today recommended an 8.15 % annual rate of interest to be credited on EPF accumulations in members’ accounts for the financial year 2022-23. The interest rate would be officially notified in the government gazette after approval of the Ministry of Finance, following which the Employees’ Provident Fund Organisation (EPFO) would credit the rate of interest into its subscribers’ accounts.
The CBT recommended the amount balancing both the growth and surplus funds to have safeguards. The recommended rate of interest of 8.15% safeguards the surplus as well as guarantees increase income to members. In fact, the rate of interest at 8.15 % and the surplus of 663.91 Crores is higher than the last year.
The Board’s recommendation involves the distribution of more than Rs. 90,000 crores in the members’ account on the total principal amount of about Rs 11 lakh crores which was Rs 77,424.84 crores and Rs 9.56 lakh crores respectively in the FY 2021-22. The total income recommended for being distributed is the highest till date. The growth in income and the principal amount is respectively more than 16% and 15% as compared to the last financial year 2021-22.
The CBT’s meeting was held here under the Chairmanship of Bhupendra Yadav, Union Minister for Labour & Employment and Environment, Forest & Climate Change.
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 available for subscribers. “EPFO has consistently followed a prudent and balanced approach towards investment, putting highest emphasis on the safety and preservation of principal with an approach of caution and growth,” the Ministry of Labour & Employment stated. It claimed that EPFO is one of the largest social security organisations which has stayed true to its objective by maintaining and providing its subscribers with a high assured interest rate even during periods of volatility in equity and capital markets.
– global bihari bureau