EPF is a compulsory financial savings scheme beneath the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952.
For 2021-22, the federal government had authorised a four-decade-low rate of interest of 8.1 per cent on worker provident fund deposits
The rate of interest on the workers’ provident fund (EPF) is more likely to be revised, even because the retirement fund physique EPFO’s board meets on Monday. Apart from rate of interest revision, the board can also be more likely to talk about the problem of upper pension and to permit its clean implementation, in accordance with media experiences.
According to an ET report just lately, the federal government may peg the rate of interest on PF deposits at about 8 per cent for the monetary yr 2022-23, as in contrast with 8.1 per cent at present. It is really useful by the EPFO’s Finance Investment and Audit committee based mostly on the earnings for 2022-23.
The EPFO’s central board, Central Board of Trustees, is a tripartite physique of the EPFO involving authorities, employees and employers’ representatives and the choice of CBT is binding on EPFO. It is headed by the labour minister.
For 2021-22, the federal government had authorised a four-decade-low rate of interest of 8.1 per cent on worker provident fund deposits. The 8.1 per cent EPF rate of interest was the bottom since 1977-78, when it stood at 8 per cent.
The 8.5 per cent rate of interest on EPF deposits for 2020-21 was determined by the Central Board of Trustees (CBT) in March 2021.
EPF is a compulsory financial savings scheme beneath the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. It is managed beneath the aegis of Employees’ Provident Fund Organisation (EPFO). It covers each institution through which 20 or extra individuals are employed. The worker has to pay a sure contribution in the direction of the provident fund and the identical quantity is paid by the employer on a month-to-month foundation.
At the top of retirement or throughout the service (beneath some circumstances), the worker will get the lump sum quantity together with the curiosity on PF contributed which will get accrued. Nearly 4.9 crore new subscribers joined Employees’ Provident Fund (EPF) scheme throughout September 2017 to November 2021 interval, authorities knowledge confirmed.
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