What’s the news?
It is now being heard that the Employees Provident Fund Organisation (EPFO) has increased its interest to 8.15% for the financial year 2022-2023 by issuing a press release.
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EPFO rate hike
In accordance with a press release issued today, the Employees Provident Fund Organisation (EPFO) has set the interest rate for the financial year 2022-23 at 8.15%. The Central Board has suggested an annual rate of interest of 8.15% to be deposited into EPF accumulations in members’ accounts throughout the aforementioned fiscal year. After obtaining the Ministry of Finance’s approval, the interest rate will be officially announced in the government gazette. Following this, the EPFO will deposit the interest rate into the accounts of its subscribers.
It has been reported that there has been an increase of 0.05% in the interest rate for EPF accounts. For the financial year 2021-2022, the interest rate had previously been set at 8.10%.
It is important to remember that the Central Board of Trustees (CBT) is responsible for determining the interest rate. Once this rate has been established, it is the responsibility of the finance ministry to officially notify it before the interest rate becomes effective. Only then can the EPFO allocate the specified interest rate to the EPF accounts. It should be noted that this current rate will also apply to the Voluntary Provident Fund (VPF).
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The press release issued:
The press release issued by the EPFO says,” The recommended rate of interest of 8.15% safeguards the surplus, as well as guarantees increased income to members. The rate of interest at 8.15% and the surplus of 663.91 crores is higher than the last year.”
According to the statement released, EPFO has successfully provided increased earnings to its members, even during economic fluctuations, while keeping credit risk at a minimum. Regarding its investment credit profile, EPFO offers higher interest rates than other similar investment options available to its subscribers. EPFO is known to adopt a cautious and growth-oriented approach while emphasizing the safety and security of the invested capital, thus ensuring a balanced investment strategy.
Despite the fluctuations in equity and capital markets, EPFO, one of the largest social security organizations, has consistently delivered on its objective of providing its subscribers with a high assured interest rate. This can be attributed to the organization’s prudent investment strategy, which is both conservative and progressive in nature. As a result, EPFO remains a sensible choice for PF members seeking reliable and valuable investment options.
What is EPFO?
The Employees Provident Fund is an obligatory deposit for salaried employees, whereby the employer must match the contribution made to the EPF account. Monthly, an employee is required to contribute 12% of their wages to the EPF account, while the employer contributes only 3.67%. The remaining 8.33% is reserved for the Employees Pension Scheme (EPS).
It is noteworthy that amidst the ongoing crediting of interest in the EPF account for the previous financial year, 2021-22, the decision regarding the interest rate for the EPF deposits in the forthcoming financial year 2022-23 has been announced by the retirement fund authority.
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How to check EPFO balances
There are four available methods for an employee whose EPF account is under the management of the EPFO to check their account balance.
By utilizing the Umang application.
By accessing the e-sewa portal available to members of the EPF.
By initiating a missed call.
Through the transmission of SMS.
For an employee whose account is managed by the exempted trust, it is advisable to request their employer to furnish the EPF statement to ascertain their balance. Should the interest rate not reflect in one’s EPF account, it is possible to complain to the EPFO. This can be accomplished by using the EPF i-gram portal or via Whatsapp. In cases wherein exempted trust under EPFO is applicable, it becomes necessary to direct complaints to the employer.
Credit: Google
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