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 staff’ provident fund (EPF) deposits for 2023-24.
In March 2023, the EPFO had elevated the interest rate on EPF marginally to eight.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 8 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.
The 8.5 per cent interest rate on EPF deposits for 2020-21 was decided by CBT in March 2021.
CBT choice to be ratified by Finance Ministry
After the CBT’s choice, 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.
EPFO offers the rate of interest solely after it’s ratified by the federal government via 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 increased at 8.8 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, increased than 8.5 per cent for 2012-13. The rate of interest was 8.25 per cent in 2011-12.
