Finance
Employee Provident Fund (EPF) deposits for 2023–24 will now have a three-year high interest rate of 8.25 percent, according to a decision made by retirement fund authority EPFO on Saturday.
The Employees’ Provident Fund Organization (EPFO) raised the interest rate on Employee Provident Funds (EPF) in March 2023, moving it up slightly from 8.10 percent in 2021–2022 to 8.15 percent for 2022–2023.
EPFO reduced the interest rate on its EPF for 2021–2022 in March 2022, from 8.5% in 2020–2021 to 8.1 percent—a four-decade low—for its more than six crore users.
This was the lowest 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.
After the CBT’s decision, the interest rate on EPF deposits for 2023-24 will be sent to Ministry of Finance for concurrence.
After the government’s ratification, the interest rate on EPF for 2023-24 will be credited into accounts of over six crore subscribers of EPFO.
EPFO provides the rate of interest only after it is ratified by the government through the finance ministry.
The interest rate on provident fund deposits was reduced by EPFO in March 2020 from 8.65 percent for 2018–19 to a seven-year low of 8.5 percent for 2019–20.
In 2016–17 and 2017–18, EPFO offered its customers an interest rate of 8.55% and 8.55%, respectively. In 2015–16, the interest rate increased somewhat to 8.8%.
The retirement fund body offered an interest rate of 8.75 percent in 2013–14 and 2014–15, which was higher than 8.5 percent in 2012–13. In 2011–12, the interest rate was 8.25 percent.
Source:FE
