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In a significant development, the Central Government has given its nod to credit an interest rate of 8.15 per cent per annum to the Employees' Provident Fund (EPF) scheme for the fiscal year 2022-23. This decision comes as a boon to the millions of EPF subscribers across the country, providing them with a higher interest rate compared to the previous year.
The announcement was made through an official office order issued by the Employees' Provident Fund Organisation (EPFO) on July 24. This approval follows the recommendation of the Central Board of Trustees (CBT) of the EPFO on March 28, where they had set an interest rate of 8.15 per cent for the current fiscal year, marking a marginal increase of 0.05 per cent.
Notably, the Union Ministry for Labour and Employment has also conveyed the central government's approval to credit the interest at 8.15 per cent for the preceding year, 2021-22, to the account of each member of the EPF scheme. This comes as a relief to contributors, as last year's interest rate had been reduced to 8.10 per cent, the lowest in four decades.
The EPF scheme has remained one of the largest and most important social security initiatives for salaried employees in India. Under the scheme, employees contribute 12 percent of their wages each month, while employers make a matching contribution. The funds accumulated in the EPF account serve as a vital financial resource for employees during their retirement years.
This move by the government reaffirms its commitment to safeguarding the financial interests of the workforce amidst economic uncertainties and market fluctuations. Despite challenges posed by volatile equity and capital markets, the EPFO has stayed true to its objective of providing subscribers with a high and assured interest rate on their contributions.
The approval of the 8.15 per cent interest rate for 2022-23 is expected to offer a boost to salaried individuals' long-term savings and retirement planning, ensuring a secure and prosperous future for the workforce. The EPF scheme continues to stand as a reliable avenue for Indian employees to safeguard their financial well-being in the years to come.
(Note: The information in this news article is sourced from Business Standards.)
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