The Central Board of Trustees (CBT) of EPFO has recommended PF interest rate of 8.15% for the financial year (FY) 2022-23 to be credited on EPF accumulations in members’ accounts, slightly higher than the 8.10% announced for FY 2021-22.
The decision was made at the 233rd meeting of the CBT held in Delhi, chaired by Shri Bhupendra Yadav, Union Minister for Labour & Employment and Environment, Forest & Climate Change.
The recommended PF interest rate for FY 2022-23 is subject to review and approval by the Ministry of Labour and Employment, Government of India. After approval, the interest will be credited to the respective subscribers’ accounts.
Balancing Growth and Surplus Funds
The Central Board of Trustees has recommended PF interest rate of 8.15% for FY 2022-23, balancing both the growth and surplus fund to have safeguards. This recommended rate of interest of 8.15% safeguards the surplus as well as guarantees increased income to members. In fact, the rate of interest at 8.15% and the surplus of 663.91 Crores is higher than the last year.
Record Distribution of Income
The Board’s recommendation involves the distribution of more than Rs. 90,000 crores in the members’ account on the total principal amount of about Rs 11 lakh crores which was Rs 77,424.84 crores and Rs 9.56 lakh crores respectively in the FY 2021-22. The total income recommended for being distributed is the highest till date. The growth in income and the principal amount is respectively more than 16% and 15% as compared to last financial year 2021-22.
Prudent and Balanced Investment Approach
EPFO has consistently followed a prudent and balanced approach towards investment, putting the highest emphasis on the safety and preservation of principal with an approach of caution and growth. EPFO being one of the largest social security organizations has stayed true to its objective by maintaining and providing its subscribers with the high assured interest rate even during the periods of volatility in equity and capital markets. A blend of conservative yet progressive approach of investment followed by EPFO has made it a wise option for PF members.
Benefits of EPFO Investment
Considering the credit profile of the EPFO investment, the interest rate of EPFO is higher than other comparable investment avenues available for subscribers. EPFO has been able to distribute higher income to its members, through various economic cycles with minimal credit risk. This makes EPFO a reliable and wise option for PF members.
In conclusion, the Ministry of Labour & Employment has announced an 8.15% interest rate for EPF subscribers for the financial year 2022-23. This decision was made after a thorough review and recommendation by the Central Board of Trustees, EPF, which balanced both growth and surplus funds. EPFO has a proven track record of maintaining a high assured interest rate for its subscribers, with a prudent and balanced investment approach, making it a reliable and wise option for PF members.