The Employees’ Provident Fund Organisation (EPFO) fixed the interest rate on employees’ provident fund at 8.25 per cent for 2023-24, media agency reported citing anonymous sources.
The interest rate marked the highest seen in three years, reported PTI. Earlier in March 2023, the retirement fund body increased the interest rate on EPF marginally to 8.15 per cent for 2022-23, while the same stood at 8.10 per cent in the preceding 2021-22 period.
In 2022, the official body reduced the interest rate on EPF for the 2021-22 period to 8.1 per cent. This marked the lowest rates since 1977-78, when the EPF interest rate stood at 8 per cent.
Notably, the decision to fix the interest rate for 2023-24 at 8.25 per cent was taken by the retirement fund authority’s apex body, the Central Board of Trustees (CBT). The CBT opted for the rates in its meeting on Saturday, the report said citing sources. “The CBT has decided to provide an 8.25 percent rate of interest on EPF for 2023-24,” it added.
Once the decision is finalised by the CBT, the interest rate on EPF for 2023-24 is submitted to the Finance Ministry for final agreement. Once approved by the government, the next step will be the crediting of the interest rates into the accounts of more than six crore individuals subscribed under the EPFO.
Earlier in March 2020, the EPFO decided on the interest rate of 8.5 per cent for provident fund deposits for 2019-20, hitting a seven-year low in the rates. For the 2018-19 period, the interest rate stood at 8.65 per cent.
In the past, the EPFO has seen a vast range in the interest rates, ranging from 8.65 per cent in 2016-17, 8.55 per cent in 2017-18, and 8.8 per cent in 2015-16.
Earlier in the 2013-14 and 2014-15 period, the retirement fund body set the interest rate higher at 8.75 per cent, while the rate stood at 8.5 per cent in 2012-13. In 2011-12, the rates touched 8.25 per cent.
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