HT Digital,
New Delhi, Feb 10: In a significant move that will benefit millions of subscribers, the Employees’ Provident Fund Organisation (EPFO) has raised the interest rate on provident fund deposits to 8.25% for the fiscal year 2023-24. This decision marks a three-year high and represents an increase from the previous year’s rate of 8.15%. The Central Board of Trustees (CBT), EPFO’s apex decision-making body, made this announcement on February 10, 2024, just ahead of the general elections anticipated in April-May of the same year.
The hike is seen as a positive step towards enhancing social security for India’s workforce and aligns with Prime Minister Narendra Modi’s commitment to strengthening the financial well-being of employees post-retirement. Union Labour Minister Bhupendra Yadav highlighted the significance of this decision, which is expected to provide relief to the approximately 6.8 crore active contributing members among the total 29 crore subscribers.
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This interest rate recommendation will now be sent to the Ministry of Finance for ratification. Once approved, it will be officially notified in the government gazette, and the EPFO will credit the interest to the subscribers’ accounts. The EPFO anticipates retaining a surplus of Rs 278 crore for the fiscal year 2023, indicating a financially sound position for the organization.
The EPFO’s history of interest rates has seen fluctuations over the years, with the rate being as low as 8.1% in 2021-22, the lowest in four decades. However, the recent increase to 8.25% is a reflection of the organization’s robust financial health and its ability to offer competitive returns to its members. This move is expected to be welcomed by EPF subscribers, who will see a higher return on their retirement savings.
