The EPFO mounted a three-year excessive interest rate of 8.25% on workers’ provident fund for 2023-24 on February 10.
Retirement fund physique Employees’ Provident Fund Organisation (EPFO) on Saturday, February 10, 2024, mounted a three-year excessive interest rate of 8.25 per cent on workers’ provident fund (EPF) deposits for 2023-24.
In March 2023, the EPFO had increased the interest rate on EPF marginally to 8.15 per cent for 2022-23 from 8.10 per cent in 2021-22.
In March 2022, EPFO had lowered the interest on EPF for 2021-22 to an over four-decade low of 8.1 per cent for its over six crore subscribers, from 8.5 per cent in 2020-21.
This was the bottom since 1977-78, when the EPF interest rate stood at Eight per cent.
“The EPFO’s apex decision making body Central Board of Trustees (CBT) has decided to provide 8.25 per cent rate of interest on EPF for 2023-24 at its meeting on Saturday,” a source said.
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The 8.5 per cent interest rate on EPF deposits for 2020-21 was determined by CBT in March 2021.
CBT resolution to be ratified by Finance Ministry
After the CBT’s resolution, the interest rate on EPF deposits for 2023-24 might be despatched to Ministry of Finance for concurrence.
After the federal government’s ratification, the interest rate on EPF for 2023-24 might be credited into accounts of over six crore subscribers of EPFO.
EPFO gives the rate of interest solely after it’s ratified by the federal government by means of the Finance Ministry.
In March 2020, EPFO had lowered the interest rate on provident fund deposits to a seven-year low of 8.5 per cent for 2019-20, from 8.65 per cent offered for 2018-19.
EPFO had offered 8.65 per cent interest rate to its subscribers in 2016-17 and eight.55 per cent in 2017-18. The rate of interest was barely greater at 8.Eight per cent in 2015-16.
The retirement fund physique had given 8.75 per cent rate of interest in 2013-14 in addition to 2014-15, greater than 8.5 per cent for 2012-13. The rate of interest was 8.25 per cent in 2011-12.