The Employees’ Provident Fund Organisation (EPFO) has agreed to suggest a higher interest rate for FY24 at 8.25 per cent for its 290 million overall members out of whom roughly 68 million are active contributing subscribers.
According to procedure, the Ministry of Labour and Employment will now forward the interest rate suggestion to the Ministry of Finance for approval. After the finance minister authorizes the interest rate, EPFO will credit it to EPF subscribers.
“The 235th meeting of the Central Board of Trustees, EPFO, today has recommended 8.25 per cent as rate of interest on Employees’ Provident Fund deposits for 2023-24. The move is a step towards fulfilling the prime minister’s guarantee of strengthening social security for India’s workforce,” labour minister Bhupendra Yadav posted on social media platform X.
The suggestion to raise the EPF interest rate was made ahead of the general elections, which are expected to take place in April-May of this year, during the most recent CBT meeting on Saturday.
The previous high level of EPF interest rate was 8.5% in 2019-20. It remained at the same level in 2020-21. In 2021-22, the CBT reduced the interest rate to 8.1%, the lowest in four decades. It then increased it considerably to 8.15 percent in 2022-23.
The interest rates are fixed depending on the retirement fund’s earnings from the deposits it maintains.
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