The 235th meeting of the Central Board of Trustees (CBT) of the Employees' Provident Fund Organisation (EPFO) has recommended 8.25% interest rate on Employees' Provident Fund (EPF) deposits for the financial year 2023-24.
Union Labour Minister Bhupendra Yadav made the announcement on Saturday, February 10, emphasising that this decision aligns with Prime Minister Narendra Modi's commitment to fortify social security for the country's labor force.
The 235th meeting of 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 PM Shri @narendramodi ji’s guarantee of strengthening social security for… pic.twitter.com/z8OzHrdz1P— Bhupender Yadav (@byadavbjp) February 10, 2024
If approved, this proposed interest rate will mark the highest in the last three years, providing a welcome relief to EPF subscribers.
The previous record interest rate was set at 8.5% in the fiscal year 2019-20, and it remained constant in 2020-21.
However, in 2021-22, the CBT reduced the interest rate to 8.1%, reaching the lowest level in four decades.
A marginal increase to 8.15% was subsequently implemented in the financial year 2022-23.
The interest rate recommendation will undergo official approval from the Ministry of Finance and, upon confirmation, will be officially published in the government gazette.
Following this approval, the EPFO will proceed to credit the designated interest rate directly into the accounts of its subscribers.
EPF contribution is credited to the account on a monthly basis, and interest is computed every month. However, the total interest for the year is credited at the end of the financial year.
Going by the rule, the interest here is calculated by adding the monthly running balance, multiplying it by the interest rate, and dividing it by 1,200. The EPFO calculates the month-wise closing balance and then the interest for the whole year.
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