EPFO raises rates by 10bps, sets 8.25% for 2023-24
In March 2022, EPFO had reduced the interest rate on EPF for 2021-22 to 8.1 percent, which was the lowest in four decades
The Employees’ Provident Fund Organization (EPFO) on Saturday fixed the interest rate on Employees’ Provident Fund (EPF) deposits for 2023-24 at 8.25 percent, which is the highest in the last three years. EPFO had marginally increased the interest rate on EPF for 2022-23 to 8.15 percent in March 2023 from 8.10 percent in 2021-22.
In March 2022, EPFO had reduced the interest rate on EPF for 2021-22 to 8.1 percent, which was the lowest in four decades. The interest rate on EPF was 8.5 percent in 2020-21.
“The apex decision-making body of EPFO, ‘Central Board of Trustees’ (CBT), in its meeting on Saturday, has decided to provide 8.25 per cent interest rate on EPF for 2023-24,” a source said.
After the decision of CBT, the proposal would be sent to the Finance Ministry for approval.
After the approval of the government, the interest rate on EPF for 2023-24 will be credited to the accounts of more than six crore subscribers of EPFO.
The higher rate of EPFO interest would come as a surprise as it was widely expected that the rate would remain around 8.1-8.15%.
EPFO had provided 8.65 per cent interest rate to its subscribers in 2016-17 and 8.55 per cent in 2017-18. The rate of interest was slightly higher at 8.8 per cent in 2015-16.
The retirement fund body had given 8.75 per cent rate of interest in 2013-14 as well as 2014-15, higher than 8.5 per cent for 2012-13. The rate of interest was 8.25 per cent in 2011-12.