EPFO Board Meeting Begins Today: Pension, Interest Rates To Drop Below 8%

The Central Board of Trustees (CBT) will discuss interest rates for financial year 2022-23 for employees provident fund in its 233rd meeting to be held on March 27-28.

It is unlikely that the interest for FY23 would drop below 8 per cent, given a rising interest rate environment. Last year in March 2022 the CBT decided to lower the interest rate to 8.1 per cent for over 6 crore subscribers. It was the lowest seen in four decades.

After the CBT decision, the interest rate on EPF deposits for 2022-23 will be sent to the Ministry of Finance for concurrence. EPFO provides the rate of interest only after it is ratified by the government through the finance ministry. In March 2020, EPFO had lowered the interest rate on provident fund deposits to a seven-year low of 8.5 per cent for 2019-20, from 8.65 per cent provided for 2018-19. EPFO had provided 8.65 per cent interest rate to its subscribers in 2016-17 and 8.55 per cent in 2017-18. The rate of interest was slightly higher at 8.8 per cent in 2015-16. The retirement fund body had given 8.75 per cent rate of interest in 2013-14 as well as 2014-15, higher than 8.5 per cent for 2012-13. The rate of interest was 8.25 per cent in 2011-12.

With inputs from PTI