The Central Board of Trustees of the Employees’ Provident Fund Organisation (EPFO) has recommended an increase in the EPF interest rate to 8.25% for the financial year 2023-24. This decision comes ahead of the general elections scheduled for April-May this year. The interest rate hike is seen as a positive move for the over 29 crore EPF subscribers, particularly the 6.8 crore active contributing subscribers.
This rate hike to 8.25% is the highest in the past three years, surpassing the previous highest rate of 8.5% in 2019-20. In the last fiscal year, the interest rate was maintained at 8.15%. However, in 2021-22, the interest rate was reduced to 8.1%, which marked the lowest rate in four decades. The Ministry of Labour and Employment will now send this recommendation to the Ministry of Finance for approval, after which the EPFO will credit the interest rate for the previous fiscal year to the EPF subscribers.
EPF Interest Rates from the Last Decade
| Year | EPF Interest Rate |
|---|---|
| 2010-11 | 9.50% |
| 2011-12 | 8.25% |
| 2012-13 | 8.50% |
| 2013-14 | 8.75% |
| 2014-15 | 8.75% |
| 2015-16 | 8.80% |
| 2016-17 | 8.65% |
| 2017-18 | 8.55% |
| 2018-19 | 8.65% |
| 2019-20 | 8.50% |
| 2020-21 | 8.50% |
| 2021-22 | 8.10% |
| 2022-23 | 8.15% |
| 2023-24* | 8.25% |
| *as recommended by CBT, to be approved by finance Ministry |
The interest rates for EPF over the years have varied, with 2010-11 recording the highest rate of 9.50%, while the lowest rate was seen in 2021-22 with 8.1%. The decision to increase the interest rate for 2023-24 to 8.25% was made by the Central Board of Trustees during their recent meeting.
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This interest rate hike is expected to be beneficial for EPF subscribers, providing them with better returns on their investments. It also comes as a boost ahead of the general elections, providing additional financial security for employees. The EPFO’s decision is in line with their commitment to supporting the financial goals of their subscribers.
In conclusion, the EPFO’s recommendation to increase the EPF interest rate to 8.25% for the financial year 2023-24 is expected to have a positive impact on over 29 crore EPF subscribers. This decision will enhance the returns on their investments and provide them with greater financial security.
Source: https://indianexpress.com/article/business/epfo-central-board-recommends-hiking-rate-to-a-3-year-high-of-8-25-9154322/
Last Updated on 10 months
