EPFO hikes interest rate on deposits to 8.25% from 8.15% for FY23-24

NEW DELHI: The Central Board of Trustees (CBT) of the Employees Provident Fund Organization (EPFO) has recommended an 8.25% rate of interest to its subscribers for FY2023–24.The total amount it recommended for the distribution is Rs 1,07,000 crore to EPF members for FY 2023–24, as compared to Rs 91,151.66 crore in the financial year 2022–23. The interest rate for fiscal year 2022–23 was 8.15%. This is the highest amount ever the board has recommended for distribution to its subscriber accounts.“The Central Board recommended an annual rate of interest of 8.25% to be credited on EPF accumulations in members’ accounts for the financial year 2023–24. This interest rate will be officially notified in the government gazette after approval by the Ministry of Finance,” reads the CBT press note.The board took the decision in its 235th meeting held on Saturday in Delhi, chaired by Bhupendra Yadav, Minister for Labour and Employment. The board will send the interest rate recommendation to the finance ministry for concurrence. Once approved, the amount will be credited to the accounts of subscribers. The board said the income of the people has grown by more than 17.39% this financial year compared to the last fiscal. “The interest rate offered by EPFO tends to be higher compared to other comparable investment avenues available to subscribers. This indicates confidence in the credit profile of EPFO’s investments, as well as its ability to provide attractive returns to its members,” reads the press note.Interest rate on EPF over last 10 yrsEPF rate (%)2014-15 8.752015-16 8.82016-17 8.652017-18 8.552018-19 8.652019-20 8.52020-21 8.52021-22 8.12022-23 8.152023-24 8.25

Source link