EPFO fixes 3-year high 8.25% interest rate on employees’ provident fund for 2023-24: Sources

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The Employees’ Provident Fund Organisation (EPFO) has fixed an 8.25 percent interest rate on employees’ provident fund for 2023-24, sources told PTI on February 10. This is a three-year high from the retirement fund body.

In March 2023, EPFO raised the interest rate on EPF slightly to 8.15 percent for 2022-23, compared to 8.10 percent in 2021-22. Earlier in March 2022 however, it had reduced the interest rate on EPF for 2021-22 to 8.1 percent, marking the lowest since 1977-78 when the EPF interest rate was 8 percent.

The Process

The decision to provide an 8.25 percent interest rate for 2023-24 was made by the EPFO’s apex decision-making body, the Central Board of Trustees (CBT), during its meeting on Saturday, February 10.

“The CBT has decided to provide an 8.25 percent rate of interest on EPF for 2023-24,” a source told PTI.

Following the CBT’s decision, the interest rate on EPF for 2023-24 will be submitted to the Ministry of Finance for concurrence. Once ratified by the government, the interest rate will be credited into the accounts of over six crore EPFO subscribers.

Historical Context

In March 2020, the EPFO reduced the interest rate on provident fund deposits to a seven-year low of 8.5 percent for 2019-20, down from 8.65 percent in 2018-19.

Over the past years, EPFO interest rates have seen variations, with rates such as 8.65 percent in 2016-17, 8.55 percent in 2017-18, and a slightly higher 8.8 percent in 2015-16.

The retirement fund body had provided a higher interest rate of 8.75 percent in 2013-14 and 2014-15, compared to 8.5 percent for 2012-13, while the rate of interest was 8.25 percent in 2011-12.

Source from: https://www.livemint.com/economy/epfo-fixes-8-25-interest-rate-on-employees-provident-fund-for-2023-24-sources-11707541846368.html

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