The EPFO mounted a three-year excessive interest rate of 8.25% on workers’ provident fund for 2023-24 on February 10.
The Central Board of Trustees of the Employees’ Provident Fund Organisation (EPFO), has beneficial an interest rate of 8.25% on Provident Fund deposits for 2023-24. At current, the interest rate is 8.15%.
“The move is a step towards fulfilling PM Modi’s guarantee of strengthening social security for India’s workforce,” mentioned Union Labour Minister Bhupendra Yadav.
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In March 2023, the EPFO had elevated the interest rate on EPF marginally to eight.15% for 2022-23 from 8.10% 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% in 2020-21.
This was the bottom since 1977-78, when the EPF interest rate stood at 8%.
“The EPFO’s apex decision making body Central Board of Trustees (CBT) has decided to provide 8.25% rate of interest on EPF for 2023-24 at its meeting on Saturday,” a source said.
The 8.5% interest rate on EPF deposits for 2020-21 was decided by CBT in March 2021.
CBT determination to be ratified by Finance Ministry
After the CBT’s determination, the interest rate on EPF deposits for 2023-24 will likely be despatched to Ministry of Finance for concurrence.
After the federal government’s ratification, the interest rate on EPF for 2023-24 will likely be credited into accounts of over six crore subscribers of EPFO.
(With inputs from PTI)
