EPFO declares 8.15% as EPF interest rate for FY 2022-23.
EPF Interest Rate
EPF is a retirement benefits scheme under the Employees Provident Fund and Miscellaneous Act, 1952, where an employee must pay a particular contribution towards the project, and an equal contribution is paid by the employer as well on a month-on-month basis. The Scheme is managed by Employee Provident Fund Organization (EPFO).
Current & historical EPF Interest Rates
The Interest rate of EPF is reviewed every year after consultation with the Ministry of Finance by the EPFO Central Board of Trustees. The PF interest rate of 2023 is fixed at 8.15%. Provident fund Interest rates for the last five years are mentioned below:
| Year EPF | Interest Rate |
| 2016-2017 | 8.65% |
| 2017-2018 | 8.55% |
| 2018-2019 | 8.65% |
| 2019-2020 | 8.65% |
| 2020-2021 | 8.55% |
| 2021-2022 | 8.55% |
| 2022-2023 | 8.15% |
EPF Interest Rates 2022-23
The interest rate on EPF is reviewed on a yearly basis. The EPF Interest rate for the fiscal year 2022-23 is 8.15%. When the EPFO announces the interest rate for a fiscal year and the year closes, the interest rate is computed for the month-by-month closing balance and then for the entire year.
The year in which the new interest rates are published remains valid for the following fiscal year, i.e., from the year beginning on April 1st of one year to the year ending on March 31st of the following year. Here are a few key points to remember about EPF Interest Rate:
- The interest rate of 8.15% has come into effect and will be applicable to EPF deposits made between April 2022 and March 2023.
- Even though the interest is calculated monthly, it is only deposited to the Employees’ Provident Fund account once a year on March 31st of the applicable fiscal year.
- The transferred interest is added to the next month’s balance, i.e., April’s balance, and is then used to calculate interest.
- If no contributions are made to an EPF account for 36 months in a row, the account becomes dormant or inoperative.
- Employees not reached retirement age might earn interest on their inactive accounts.
- Interest is not paid on funds put in retired employees’ inactive accounts.
- The interest collected on dormant accounts is taxed at the member’s slab rate.
- The employee will not receive any interest in payments made by the company to the Employee’s Pension Scheme. However, beyond the age of 58, a pension is provided out of this amount.
Declaration Rate of Interest INV 240720231: Download
Sources by: PCS CONSULTANCY SERVICES
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