EPFO Board Meeting: EPFO ​​board meeting, interest rates may be changed

EPFO Board Meeting: The meeting of the Employees Provident Fund Organization (EPFO) board is going to start just a short time. It is believed that a big decision can be taken on the interest rates of EPF accounts in this meeting. However, according to media reports, the EPFO ​​may retain the interest rate of 8.25 per cent, but some media reports say that there may be a slight increase or cut.

How much is the interest rate now

Let us know that the current interest rate of EPF for FY 2023-24 is 8.25 percent, which was 8.15 percent before that. At the same time, it was 8.50 percent from 2019 to 2021, while the highest interest rate so far was 12 percent in 2001.

How does your contribution to EPF work?

If you are employed, then every month 12 percent of your basic salary and dearness allowance is deposited in EPF account. In addition, your employer means the company also contributes so much, but 8.33 percent of it goes to the Employees Pension Scheme (EPS), and the rest is added to the 3.67 percent EPF.

The government has made membership of EPF mandatory for employees earning less than 15,000. This means that every person coming within this salary limit must have a PF account.

How is the EPF calculated?

Suppose your basic salary + DA is 14,000.

Your contribution- 12% × 14,000 = 1,680

Contribution of employer (EPF)- 3.67% × 14,000 = 514

Contribution of employer (EPS)- 8.33% × 14,000 = 1,166

Total contribution (EPF + EPF)- 1,680 + 514 = 2,194

Now, if the interest rate of EPF is 8.25 percent annually, then the interest of the month will be 8.25 percent / 12 = 0.679 percent

What will be the decision on the new EPF interest rate?

According to a Business Standard report, this time the EPFO ​​board may cut the interest rate slightly, as the pressure in the stock market and bond yields has increased due to the fall and more claim settlement. However, most people are assuming the interest rate will be kept stable. Once the interest rate is fixed by the EPFO ​​board, the Finance Ministry will have to take approval to implement it.

SSettled Social Security Organization settled

EPFO is India’s largest social security organization, which has about 29.88 crore accounts (Annual Report 2022-23). It started on 15 November 1951 with EPF Ordinance, which was later converted into the 1952 EPF Act. This law was implemented for the safety of employees of factories and other establishments across the country.

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