EPFO fixes 3-year high interest rate of 8.25% for FY 2023–24.
For the fiscal year 2023–2024, the Central Board suggested crediting members' EPF accumulations with an annual rate of interest of 8.25%.
The Employees’ Provident Fund Organization (EPFO), one of the biggest social security organizations in the world, has set the interest rate for FY 2023–2024 at 8.25%.
For the fiscal year 2023–2024, the Central Board suggested crediting members’ EPF accumulations with an annual rate of interest of 8.25%.
Following approval by the Ministry of Finance, this interest rate will be formally announced in the official gazette. The authorized interest rate will then be credited to the subscribers’ accounts by EPFO.
“The 235th meeting of the Central Board of Trustees, EPFO, has proposed 8.25 percent as the rate of interest on Employees’ Provident Fund deposits for 2023–2024,” stated Bhupender Yadav, Union Cabinet Minister for Labour & Employment.
He continued, “The action is a step towards realizing PM Shri Narendra Modi’s pledge to strengthen social security for India’s workforce.”
The 235th meeting of Central Board of Trustees, EPFO, today has recommended 8.25 per cent as rate of interest on Employees' Provident Fund deposits for 2023-24.
— Bhupender Yadav (मोदी का परिवार) (@byadavbjp) February 10, 2024
The move is a step towards fulfilling PM Shri @narendramodi ji’s guarantee of strengthening social security for… pic.twitter.com/z8OzHrdz1P
An interest rate of 8.15% was already set for employees’ provident funds’ year 2022–2023 by the Employees Provident Fund Organization (EPFO). The EPFO had previously lowered the interest rate to 8.10% in 2021–2022, which was the lowest rate since 1977–1978.
The interest rate on provident fund deposits was reduced by EPFO in March 2020 from 8.65 percent for 2018–19 to a seven-year low of 8.5 percent for 2019–20.
Today, February 10, 2024, in Delhi, was the 235th meeting of the Employees’ Provident Fund’s Central Board of Trustees.
Additionally, the Board has suggested that the historical income of Rs. 1,07,000 crores be distributed to the accounts of EPF members on a principle amount of around Rs. 13 lakh crores, which was Rs. 91,151.66 crores and Rs. 11.02 lakh crores in the fiscal year 2022-2023 accordingly. It is the greatest proposed distribution of total income ever.
It stated that the proposed total income for distribution is the largest on record.
According to the statement, there has been a notable increase when compared to the previous financial year. The income increased by more than 17.39 percent, and the principal amount increased by 17.97 percent.
This suggests healthy financial performance and potentially strong returns for the members, as stated.
Over the years, EPFO has proven to be a reliable source of prudently distributed revenue to its members.
According to the statement, subscribers to EPFO typically receive a better interest rate than they would from other investing avenues.
The interest rate on EPF deposits for 2023–2024 will be forwarded to the Ministry of Finance for approval following the CBT’s ruling.
The interest rate on EPF for 2023–2024 would be credited into the accounts of more than six crore EPFO users following government ratification.
Only after it has been approved by the government through the ministry of finance does EPFO release the interest rate.
EPF interest rate year-wise
The interest rate on the Employee Provident Fund (EPF) was raised by the Employees’ Provident Fund Organization (EPFO) in March 2023, from 8.10 percent in 2021–2022 to 8.15 percent in 2022–2023.
For its more than six crore members, EPFO reduced the interest rate on EPF for 2021–2022 in March 2022 from 8.5 percent in 2020–2021 to 8.1 percent, a drop of more than four decades.
This was the lowest since the EPF interest rate was 8% in 1977–1978.
CBT determined in March 2021 that the interest rate on EPF deposits for 2020–2021 will be 8.5 percent.
The interest rate on provident fund deposits was reduced by EPFO in March 2020 from 8.65 percent for 2018–19 to a seven-year low of 8.5 percent for 2019–20.
In 2016–17 and 2017–18, EPFO offered its subscribers an interest rate of 8.65 percent and 8.55 percent, respectively. In 2015–16, the interest rate was 8.8 percent, which was somewhat higher.
In 2013–14 and 2014–15, the retirement fund organization offered an interest rate of 8.75 percent, which was higher than 8.5 percent in 2012–13. In 2011–12, the interest rate was 8.25 percent.
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