News Brief
EPFO Raises Interest Rate To Three-Year High Of 8.25 Per Cent For 2023-24: Here's All About It
Employee Provident Fund (EPF) is India’s most popular retirement financial planning choice for taxpayers.
The Employees’ Provident Fund Organisation (EPFO) has announced an increase in the interest rate on provident fund deposits to 8.25 per cent, the highest in three years, for the financial year 2023-24.
This marks a rise from the previous year's rate of 8.15 per cent in 2021-22.
The decision, approved by the central board of trustees of EPFO, chaired by Labor and Employment Minister Bhupender Yadav, was made at the 235rd board meeting held on Saturday (10 February).
The increase in interest rate comes on the heels of strong financial returns for EPFO, coupled with minimal Covid-related withdrawals, as per sources familiar with the matter, reported Economic Times.
While the proposed interest rate of 8.25 per cent awaits official notification following approval from the Ministry of Finance, EPFO plans to credit the interest into subscribers’ accounts in the latter part of the upcoming financial year.
Moreover, exempted trusts are also mandated to credit interest at the same rate as EPFO to their employees, ensuring uniformity in interest rates across different provident fund schemes.
The Employees’ Provident Fund is a mandatory contribution for salaried employees in organisations with 20 or more workers.
Under the EPF&MP Act, an employee contributes 12 per cent of his wages to the EPF account on a monthly basis and a matching contribution is made by the employer.
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