The government has granted approval to raise the interest rate on Provident Fund (PF) deposits to 8.15% for the financial year 2022-23, as proposed by the Central Board of Trustees (CBT) of the Employees’ Provident Fund Organisation (EPFO). This decision marks a slight increase in the interest rate from the previous year and will benefit over six crore EPF subscribers.

Boost in Retirement Fund Interest Rate: On March 28, 2023, the EPFO made a marginal adjustment to raise the interest rate on employees’ provident fund (EPF) deposits to 8.15% for the fiscal year 2022-23. The official order issued on Monday mandates the EPFO field offices to credit the interest at 8.15% into the accounts of EPF members for the said period.

Steps Towards Crediting Interest: With the approval in place, EPFO field offices will now initiate the process of crediting the enhanced interest rate into the subscribers’ accounts. This move comes after a year where the interest rate on EPF deposits was brought down to 8.10% in the financial year 2021-22, the lowest rate since 1977-78.

Simplified Process for Higher Pension Application: Labour Minister, Rameswar Teli, assured that the process of applying for a higher pension through the unified portal of EPFO is straightforward and easily understandable. The unified portal allows for the submission of joint options for higher pension, adhering to the provisions of the Employees’ Provident Fund (EPF) Scheme, 1952, Employees’ Pension Scheme (EPS), 1995, and the Supreme Court’s November 4, 2022 judgment.

Influx of New Members in May: The latest payroll data reveals that the EPFO added a net total of 16.30 lakh new members in May this year. Out of these, around 8.83 lakh were new enrolments, marking the highest number in the past six months. Notably, individuals aged between 18 and 25 years accounted for 56.42% of the new members during the month.

Switching Jobs and Social Security Protection: Approximately 11.41 lakh members rejoined the EPFO after switching jobs and chose to transfer their accumulations instead of seeking final settlement. This decision reflects their preference to extend their social security coverage. Furthermore, 3,673 establishments also expanded social security coverage for their employees by remitting their first ECR during the same month, as per the Ministry of Labour and Employment’s statement.

Note: The information presented in this blog post is based on publicly available news and official statements. It is advised to refer to the original news sources for verification and further updates.