New Delhi: The Employees’ Provident Fund Organization (EPFO), the retirement body of India, has announced a generous gift for its over 6 crore subscribers. It has fixed an interest rate of 8.25 percent on Employees’ Provident Fund (EPF) deposits for the financial year 2023-24, which is the highest in the last three years.
The EPFO had increased the interest rate on EPF marginally to 8.15 percent for 2022-23, from 8.10 percent for 2021-22. However, in 2021-22, the EPFO slashed the interest rate on EPF to a record low of 8.1 percent, the lowest since 1977-78. The interest rate on EPF for 2020-21 was 8.5 percent.
The decision to hike the interest rate on EPF for 2023-24 was taken by the Central Board of Trustees (CBT), the apex decision-making body of the EPFO, in its meeting on Saturday. A source from the EPFO told news agency PTE that the CBT had decided to provide a higher interest rate on EPF for 2023-24, keeping in mind the welfare of the workers and the surplus available to the organization.
The interest rate on EPF for 2023-24 will now be sent to the Finance Ministry for approval. Once the government consents, the interest rate will become effective and be credited to the accounts of the EPFO subscribers. The EPFO usually credits the interest rate on the EPF by the end of the financial year.
The EPFO is one of the largest social security schemes in the world, providing retirement, pension, and insurance benefits to millions of workers in organized and unorganized sectors. The EPFO determines the interest rate on EPF based on its income from investments and other factors. The interest rate on EPF is tax-free up to a limit of Rs 2.5 lakh per annum.
