The Central Board of Trustees (CBT) of the EPFO is the apex decision-making body of the organisation headed by the Union Labour and Employment Minister.
March 2023 Order
While passing its decision, CBT noted that the interest rate at 8.15 per cent and “the surplus of Rs 663.91 crore are higher than the last year.” It added that EPFO could distribute higher income to its members through the various economic cycles with minimal credit risk.
“Considering the credit profile of the EPFO investment, the interest rate of EPFO is higher than other comparable investments avenues available for subscribers,” it said.
EPF Contributions
Contributions to the EPF fund are mandatory for both employees and employers.
Contributions to EPF are mandatory for salaried employees. Employers are also required to make a matching contribution to the EPF account of the employee. While employees contribute 12 per cent of their wages to their EPF accounts, employers contribute 3.67 per cent to the EPF account, and the balance of 8.33 per cent goes towards the Employees’ Pension Scheme (EPS). Interest earned will be taxable if the total deposits in an EPF and voluntary provident fund (VPF) account exceed Rs 2.5 lakh in a financial year.