Finance Ministry Approves 8.25% EPF Interest Rate for FY 2023-24
The proposed interest rate was pending for the Ministry of Finance's approval. After approval now EFP Interest Rate has been officially notified.
The Finance Ministry has officially approved an 8.25% interest rate for the Employees’ Provident Fund (EPF) for the financial year 2023–24. This decision comes after the Central Board of Trustees (CBT) of the EPF recommended the rate during its 235th meeting held in Delhi.
Key Highlights:
- Historic Income Distribution: The CBT has proposed a distribution of historic income amounting to Rs. 1,07,000 crores to EPF members’ accounts. This distribution is based on a total principal amount of approximately Rs. 13 lakh crores, which were Rs. 91,151.66 crores and Rs. 11.02 lakh crores in the financial year 2022–23, respectively. This marks the highest income distribution on record, reflecting robust financial performance.
- Strong Growth: Compared to the previous financial year, there has been significant growth. The income has increased by more than 17.39%, while the principal amount has risen by 17.97%, These figures indicate a healthy financial performance and potentially strong returns for EPF members.
- Confidence in EPFO’s Investments: The interest rate offered by EPFO tends to be higher compared to other comparable investment avenues available to subscribers. This reflects confidence in the credit profile of EPFO’s investments and its ability to provide attractive returns to its members.
- Highest Rate in Three Years: The 8.25% interest rate for 2023–24 is the highest in the last three years. In 2021-2022 and 2022-2023, the EPF interest rates were 8.1% and 8.15 percent, respectively.
- Annual Review: The interest rate of EPF is reviewed annually, and it is fixed based on the earnings of the retirement fund body from the deposits it holds.
- Compulsory Savings Scheme: The Employees’ Provident Fund is a compulsory savings scheme for salaried employees in organizations with 20 or more workers. It ensures financial security through mandatory contributions from both employees and employers.
With this latest development, EPF subscribers can expect competitive returns on their savings, reinforcing the EPFO’s commitment to its members’ financial well-being.
Stay tuned, to PropleManager.co.in for further updates on the evolving workplace paradigm.
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