The Employees’ Provident Fund Organisation (EPFO) has declared the interest rate as 8.15% for Employees’ Provident Fund (EPF) accounts for the financial year 2022-23. The announcement was made by the EPFO via a circular dated July 24, 2023.
According to the aforementioned circular issued by the EPFO, “The Ministry of Labour and Employment, Government of India, has conveyed the approval of the Central Government under para 60(1) of the 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.”
Paragraph 60(1) of the Employees’ Provident Fund Scheme, 1952 directs the Commissioner to credit to the account of each member interest at such rate as may be determined by the Central Government in consultation with the Central Board.
What is EPF?
The EPF is a mandated contribution for salaried employees. An employer is also obligated to make a matching contribution to the EPF account. On a monthly basis, an employee contributes 12% of his earnings to his EPF account. The employee’s whole contribution is placed into the EPF account. In the case of the employer, just 3.67 percent is deposited into the EPF account. The remaining 8.33% goes to the Employees’ Pension Scheme (EPS).
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