In a recent circular dated July 24, 2023, the Employees' Provident Fund Organisation (EPFO) declared the interest rate as 8.15% for Employees' Provident Fund (EPF) accounts for the financial year 2022-23. The EPFO circular read, "The Ministry of Labour and Employment, Government of India, has conveyed the approval of the Central Government under para 60(1) of Employees'...
In a recent circular dated July 24, 2023, the Employees' Provident Fund Organisation (EPFO) declared the interest rate as 8.15% for Employees' Provident Fund (EPF) accounts for the financial year 2022-23.
The EPFO circular read, "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@ 8.15 % 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."
To provide a brief overview, EPF (Employees’ Provident Fund) is a retirement benefits scheme administered by the Employees’ Provident Fund Organization (EPFO) in India. Under this scheme, both the employee and the employer make monthly contributions in equal proportions, amounting to 12% of the employee's basic salary and dearness allowance.
EPF serves as a tax-saving instrument and provides attractive interest rates on investments. A portion of the employer's contribution (8.33% out of 12%) is allocated to the Employees’ Pension Scheme (EPS).