News

Published: February 12, 2024
Updated: February 12, 2024

EPFO Sets Three-Year High Interest Rate of 8.25% for Employees' Provident Fund

Record-High Interest Rate:

The Employees' Provident Fund Organisation (EPFO) has announced a three-year high interest rate of 8.25% on employees' provident fund (EPF) deposits for the fiscal year 2023-24. This decision, made by the EPFO's apex decision-making body, the Central Board of Trustees (CBT), underscores the organization's commitment to enhancing returns for its over six crore subscribers.

Steady Increase in Interest Rates:

The latest interest rate hike marks a significant uptick from the previous fiscal year, where the interest rate was marginally increased to 8.15% for 2022-23. This upward trajectory in interest rates reflects the EPFO's efforts to provide competitive returns to its members, especially in light of economic fluctuations and inflationary pressures.

Government Ratification Process:

Following the CBT's decision, the proposed interest rate of 8.25% for 2023-24 will be submitted to the Ministry of Finance for concurrence. Once ratified by the government, the new interest rate will be credited directly into the accounts of EPFO's subscribers, providing them with enhanced financial security and stability.

Historical Perspective:

The interest rate on EPF deposits has witnessed fluctuations over the years, influenced by various economic factors and policy decisions. Notably, the interest rate for 2023-24 represents a positive shift from the previous fiscal year's rate, which was set at an over four-decade low of 8.10%.

EPFO's decision to raise the interest rate to 8.25% for the fiscal year 2023-24 signals a favorable outlook for its subscribers, offering them improved returns on their provident fund deposits. With prudent financial management and a focus on enhancing member benefits, EPFO continues to play a crucial role in safeguarding the financial interests of millions of employees across the country.