EPFO supplies the speed of curiosity solely after it’s ratified by the federal government by the finance ministry.
After the CBT’s determination, the rate of interest on EPF deposits for 2023-24 will probably be despatched to the Ministry of Finance for concurrence.
Retirement fund physique EPFO on Saturday mounted a 3-yr excessive rate of interest of 8.25 per cent on staff’ provident fund (EPF) deposits for 2023-24.
According to an announcement by the labour ministry, the choice to hike rate of interest for 2023-24 was taken at 235th assembly of Central Board of Trustees (CBT) of EPFO on Saturday, underneath the chairmanship of Union Labour & Employment Minister Bhupender Yadav.
“The CBT recommended an annual rate of interest of 8.25 per cent to be credited on EPF accumulations in members’ accounts for 2023-24. This interest rate will be officially notified in the government gazette after approval by Ministry of Finance. Subsequently, EPFO will credit the approved rate of interest into its subscribers’ accounts,” it said.
For FY24, the board beneficial distribution of Rs 1,07,000 crore to EPF members’ accounts on a complete principal quantity of Rs 13 lakh crore, which was Rs 91,151.66 crore and Rs 11.02 lakh crore, respectively in 2022-23.
Total revenue beneficial for distribution is the best on report, it stated.
Comparing with the earlier monetary yr, there was a major development, the assertion stated including that the revenue grew by greater than 17.39 per cent, whereas the principal quantity elevated by 17.97 per cent.
This suggests a wholesome monetary efficiency and probably robust returns for the members, it said.
EPFO has a powerful observe report of distributing increased revenue to its members through the years with prudence.
The rate of interest supplied by EPFO tends to be increased in comparison with different funding avenues obtainable to subscribers, it said.
This signifies confidence within the credit score profile of EPFO’s investments, in addition to its skill to offer engaging returns to its members, it said.
After the CBT’s determination, the rate of interest on EPF deposits for 2023-24 will probably be despatched to the Ministry of Finance for concurrence.
After the federal government’s ratification, the rate of interest on EPF for 2023-24 will probably be credited into accounts of over six crore subscribers of EPFO.
EPFO supplies the speed of curiosity solely after it’s ratified by the federal government by the finance ministry.
EPF rate of interest yr sensible
In March 2023, the Employees’ Provident Fund Organisation (EPFO) had elevated the rate of interest 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 curiosity on EPF for 2021-22 to an over 4-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 rate of interest stood at 8 per cent.
The 8.5 per cent rate of interest on EPF deposits for 2020-21 was determined by CBT in March 2021.
In March 2020, EPFO had lowered the rate of interest on provident fund deposits to a seven-yr low of 8.5 per cent for 2019-20, from 8.65 per cent supplied for 2018-19.
EPFO had supplied 8.65 per cent rate of interest to its subscribers in 2016-17 and eight.55 per cent in 2017-18. The price of curiosity was barely increased at 8.8 per cent in 2015-16.
The retirement fund physique had given 8.75 per cent price of curiosity in 2013-14 in addition to 2014-15, increased than 8.5 per cent for 2012-13. The price of curiosity was 8.25 per cent in 2011-12.
