Indian Economy News

The Central Board Trustees (CBT) EPF recommended an 8.15% rate of interest to EPF subscribers for FY23

Under the Chairmanship of Mr. Bhupendra Yadav, Union Minister for Labour and Employment and Environment, Forest, and Climate Change, the 233rd meeting of Central Board of Trustees (CBT), Employment Provident Fund (EPF), was held on March 28, 2023 in Delhi.

An annual interest rate of 8.15% was recommended by the Central Board to be credited on EPF accumulations in the accounts of members for FY23. After the approval of the Ministry of Finance, the interest rate would be officially notified in the government gazette after which the Employment Provident Fund Organization (EPFO) would credit the interest rate to the subscribers’ accounts.

The recommended rate of interest of 8.15% safeguards the surplus as well as guarantees increase income to members.

Furthermore, the CBT also recommended the distribution of more than US$ 10.9 billion (Rs. 90,000 crore) in the accounts of the members on the total principal amount of about US$ 130 billion (Rs. 11 lakh crore), which was US$ 9.37 billion (Rs. 77,424.84 crore) and US$ 120 billion (Rs. 9.56 lakh crore) respectively in the FY22.

It should be noted that EPFO over the years has been able to distribute higher income to its members, through various economic cycles with minimal credit risk.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.