According to the circular issued on July 24, for the financial year 2022-23, the interest rate on deposits in PF account has been increased from 8.10% to 0.05% to 8.15%. 12 percent of the base-pay and DA of any employee is done in the PF account.
The government has increased the interest on the amount deposited in Provident Fund (PF) to 8.15 percent for the financial year 2022-23. Since then, the members of the Employees’ Provident Fund Organization (EPFO) are waiting for the interest amount to be credited to their accounts. In this regard, a member tweeted and asked EPFO that till when the interest amount will be deposited in our account. EPFO replied to this and has also informed the member about the status of deposit of interest.
When will the interest be credited
EPFO replied that the process of depositing interest amount in the account for the financial year 2022-23 is in the pipeline. It will be credited soon. Will be completed whenever the interest is paid. There will be no loss of interest. Explain that the interest in the EPF account is calculated on a monthly basis only. But it is deposited in the account of the members only at the end of the financial year.
According to the circular issued on July 24, for the financial year 2022-23, the interest rate on deposits in PF account has been increased from 8.10% to 0.05% to 8.15%. This money will start reaching the accounts of 6.5 crore EPFO members of the country by August 2023. Significantly, for the financial year 2021-22, EPFO had fixed the interest rate for EPF Account at 8.10 percent.
This is how PF is deducted from salary
If you look at the EPFO Act, 12 percent of the base pay and DA of any employee is deposited in the PF account. On this, the concerned company also deposits the same amount i.e. 12% in the PF account of the employee. However, out of the contribution made by the company, 3.67 per cent goes to the EPF account, while the remaining 8.33 per cent goes to the Pension Scheme.
How much will be the benefit?
Now let’s talk about the maths of PF, then tell that if you have a total deposit of Rs 10 lakh in your PF account till March 31, 2023, then till now you used to get Rs 81,000 as interest at the rate of 8.10 per cent. On the other hand, now that the government has increased the PF interest rate to 8.15 percent, then according to this, you will get a direct benefit of Rs. 500 on the 10 lakh deposited in the account.
