EPFO interest rate: The Employees’ Provident Fund Organisation (EPFO) has fixed 8.25 percent interest rate on employees’ provident fund for FY 2023-24, as per PTI report.
the 8.25 percent rate is the highest in the past three years, sources informed PTI on Saturday.
Employees received 8.15 percent interest rate on their provident fund for FY2022-23 and 8.10 percent for FY2021-22. The EPFO had slashed the interest rate on EPF for FY 2021-22 to 8.1 percent, the lowest since 1977-78 when the EPF interest rate stood at 8 percent.
EPFO rate fixation process
The Central Board of Trustees (CBT), the apex decision-making body of the EPFO, decided to provide 8.25 percent interest on provident fund for the fiscal year 2023-24 at its meeting on Saturday, February 10.
“The CBT has decided to provide an 8.25 percent rate of interest on EPF for 2023-24,” a source told PTI.
After the Central Board of Trustees (CBT) decided on the interest rate for EPF in 2023-24, it will now be sent to the Ministry of Finance for approval. Once the government gives its nod, the interest rate will be credited to the accounts of over 6 crore EPFO subscribers.
In March 2020, the EPFO reduced the interest rate on provident fund deposits to a seven-year low of 8.5 percent for 2019-20, down from 8.65 percent in 2018-19.
Over the past years, EPFO interest rates have seen fluctuations, ranging from 8.65 percent in 2016-17, 8.55 percent in 2017-18, to a slightly higher 8.8 percent in 2015-16.
The retirement fund body had provided a higher interest rate of 8.75 percent in 2013-14 and 2014-15, compared to 8.5 percent for 2012-13, while the rate of interest was 8.25 percent in 2011-12.
