EMPLOYMENT LAW UPDATE
26th July 2023
Issue No. 09/23-24
THE EMPLOYEE PROVIDENT FUND ORGANIZATION HAS DECLARED THE RATE OF INTEREST AT 8.15% FOR MEMBERS HOLDING EMPLOYEE PROVIDENT FUND ACCOUNTS FOR THE FINANCIAL YEAR 2022-2023.
The Ministry of Labour and Employment, Government of India has conveyed the approval of the Central Government, to credit into the accounts of each member of the Employee Provident Fund Scheme 1952 (“Scheme”), interest at the rate of 8.15% for the financial year 2022-2023.
LEGISLATIVE BACKGROUND
As per Para 60 (1) of the Scheme, the Central Government shall in consultation with the Central Board, decide the rate of interest that is to be given to each member of the Scheme.
As per Para 60 (2) of the Scheme provides how this interest is to be calculated on a monthly running balances basis, that will take effect from the last day in each year.
CURRENT STANCE
The EPFO has vide a circular dated 24 July 2023, declared the rate of interest as 8.15% for the Employee Provident Fund accounts of members, for the financial year of 2022-2023.
The rate of interest being higher than 8.10% which was set for the year 2021-2022 still does not come to par with the interest rate of 8.50% which was set in the financial year 2020-2021.
The circular dated 24 July 2023 can be accessed here.
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