The Employees’ Provident Fund Organisation (EPFO) has decided to recommend a higher interest rate for FY24 at 8.25 per cent for its 290 million total subscribers out of which around 68 million are active contributing subscribers.
According to convention, the Ministry of Labour and Employment will now send the interest rate recommendation to the Ministry of Finance for ratification. After the finance ministry approves the interest rate, EPFO will credit the rate of interest 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.
Coming ahead of the general elections that are likely to be held in April-May this year, the recommendation to hike the EPF interest rate was taken in the latest CBT meeting held on Saturday.
The previous high level of EPF interest rate was at 8.5 per cent in 2019-20. It was maintained at the same level in 2020-21. In 2021-22, the CBT had cut the interest rate to 8.1 per cent, the lowest in four decades. It then hiked it marginally to 8.15 per cent in 2022-23.
The interest rates are fixed based on the earnings of the retirement fund body on the deposits it has.
First Published: Feb 10 2024 | 12:20 PM IST