The Central Board Trustees (CBT) EPF has recently recommended an 8.15% annual rate of interest to be credited on EPF accumulations in members' accounts for the financial year 2022-23. This decision was taken in the 233rd meeting of the Central Board of Trustees, EPF held under the Chairmanship of Shri Bhupendra Yadav, Union Minister for Labour & Employment and Environment, Forest & Climate Change.
The Vice-Chairmanship of Shri Rameshwar Teli, Union Minister of State for Labour & Employment, Petroleum & Natural Gas and Co-Vice-Chairpersonship of Ms Arti Ahuja, Secretary Labour & Employment and the Member Secretary Smt. Neelam Shami Rao, Central P F Commissioner were also present during the meeting.
The recommended rate of interest of 8.15% balances both the growth and surplus fund and safeguards the surplus as well as guarantees an increase in income to members. This rate of interest and the surplus of 663.91 crores is higher than the previous year. The Board's recommendation involves the distribution of more than Rs. 90,000 crores in the members' account on the total principal amount of about Rs 11 lakh crores which was Rs 77,424.84 crores and Rs 9.56 lakh crores respectively in the FY 2021-22.
EPFO has been able to distribute higher income to its members over the years through various economic cycles with minimal credit risk. The interest rate of EPFO is higher than other comparable investment avenues available for subscribers, considering the credit profile of the EPFO investment. EPFO has consistently followed a prudent and balanced approach towards investment, putting the highest emphasis on the safety and preservation of principal with an approach of caution and growth.
The total income recommended for distribution is the highest till date, and the growth in income and the principal amount is respectively more than 16% and 15% as compared to the last financial year 2021-22. EPFO being one of the largest social security organizations has stayed true to its objective by maintaining and providing its subscribers with a high assured interest rate even during the periods of volatility in equity and capital markets.
In conclusion, the EPFO's prudent investment strategy and balanced approach towards investment have made it a wise option for PF members. The higher interest rate and the surplus of 663.91 crores recommended by the Central Board of Trustees (CBT) EPF for the financial year 2022-23 safeguards the surplus as well as guarantees an increase in income to members, which is higher than the previous year. The EPFO's consistent approach towards the safety and preservation of principal with an approach of caution and growth has resulted in a total income recommended for distribution, which is the highest till date.