Govt. approves 8.15% interest rate on Employees’ Provident Fund for FY23

Ministry of Labour and Employment, Government of India, has conveyed the approval of the Central Government under para 60(1) of Employees’ Provident Fund Scheme, 1952, to credit interest @8.15% for the year 2022-23 to the account of each member of the EPF Scheme as per the provisions under Para 60 of EPF Scheme, 1952,”. Last year interest was credited at the rate of 8.10%.

The interest rate is officially notified in the government gazette after approval of the Ministry of Finance, following which EPFO credits the rate of interest into subscribers’ accounts. The present approval is one of the fastest approvals given by the Finance Ministry for the EPF interest rate. However, the crucial part would be the time gap between the approval and the final crediting of the interest to member accounts.

Calculation EPF Interest credit:

The interest on your EPF account is calculated by adding the monthly running balance, multiplying it by the interest rate, and dividing it by 1,200. The EPFO calculates the month-wise closing balance and then the interest for the whole year.

In case you withdraw a certain sum from the account, then interest from the beginning of the year till the last date of the month preceding the month in which the withdrawal took place is considered. So, the closing balance for the year will be Opening balance + contributions – withdrawal (if any) + interest.

Once the EPF interest is credited, subscribers can check the same by taking note of their Provident Fund (PF) balance. This can be done by logging in to the official website, sending a text message ‘EPFOHO UAN ENG’ to 7738299899, giving a missed call at 9966044425, or downloading and using the UMANG App.