New Delhi: The last good news has come for the crores of PF account holders sitting with their hearts. The Trust of Employees’ Provident Fund Organization (EPFO) decided to increase the interest rates for the current financial year (2022-23) on Tuesday. Now more than 7 crore account holders of EPFO will get 8.15 percent interest.
According to the news agency PTI, after a two-day meeting of the Central Board of Trustees (CBT) of EPFO, it was decided to increase the interest rates of PF by 0.05 percent. Its interest rate was 8.10 percent in the last financial year, which has now increased to 8.15 percent. Earlier, the lowest PF interest rate was 8 percent in 1977-78.
Just a few complications left
It is not that after the seal of the trustees of EPFO, the new interest rate will apply to the PF account. For this, it is also necessary to take the approval of the government. The Finance Ministry will also review the interest rate fixed for 2022-23 and only after it is approved, the way to send the interest money to the account will be clear. It is noteworthy that even the interest money for the financial year 2021-22 has not yet been received by the PF account holders.
Earlier the intention was to keep 8 percent
There were speculations that this time the interest rate on PF accounts is to be reduced once again to 8 percent. But the trustees felt that considering the inflation, more interest should be given to the account holders. On the first day of the meeting, the issue of higher pensions was also discussed between the Union Labor Minister Bhupendra Yadav and the trustees. It was informed that EPFO is completing the process of providing higher pensions to eligible subscribers.
Decreasing interest since 2018-19
The interest rate on PF has been continuously decreasing since the financial year 2018-19. In the last financial year, the government saved Rs 450 crore by reducing the interest rate to 8.10 percent. In such a situation, it seemed that this year also the interest rate would remain the same or it would be reduced to 8 percent. In 2018-19, the interest on PF was 8.65 percent, which was reduced to 8.50 percent in 2019-20. The interest rate was the same in 2020-21 as well, whereas in 2021-22 it was reduced to 8.10 percent.
