The Central government accepted the recommendation of the Central Board of Trustees (CBT) of the Employees’ Provident Fund Organisation (EPFO) to increase the interest rate of deposits in Provident Fund (PF) to 8.15%.
- The new rate will be applicable for this financial year.
Increase in Interest Rates
- The Labour Ministry had forwarded the CBT’s recommendation for the Union Finance Ministry’s approval.
- The CBT had recommended an increase to 8.15% from 8.10% interest to the deposits on March 28, 2023.
- The Finance Ministry has finally accepted the proposal and the interest now will be credited to the accounts of subscribers.
EPFO is one of the World’s largest Social Security Organisations in terms of clientele and the volume of financial transactions undertaken.
- The Employees’ Provident Fund came into existence with the promulgation of the Employees’ Provident Funds Ordinance in 1951.
- It was replaced by the Employees’ Provident Funds Act, 1952.
- The act works for the betterment of employees in factories and other establishments working in the organised sector.
- The Act is now referred as the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952 which extends to the whole of India.
- The Act and Schemes framed there under are administered by a tri-partite Board known as the Central Board of Trustees.
- The board consists of representatives of Government (Both Central and State), Employers, and Employees.
- The Central Board of Trustees administers a contributory provident fund, pension scheme and an insurance scheme for the workforce engaged in the organized sector in India.
- The EPFO is under the administrative control of Ministry of Labour and Employment, Government of India.
- The Board operates three schemes – EPF Scheme 1952, Pension Scheme 1995 (EPS) and Insurance Scheme 1976 (EDLI).
Note : At present EPFO maintains 27.74 crore accounts (Annual Report 2021-22) pertaining to its members.
Source: The Hindu and epfindia.gov.in