Good news for EPFO subscribers: Provident Fund interest rate hiked to 8.25% for 2023-24

EPFO interest rate 2023-24: The Employees' Provident Fund Organisation (EPFO) has increased the interest rate on employees' provident fund (EPF) deposits to 8.25 per cent for the fiscal year 2023-24, news agency PTI reported quoting a source. This figure marks a significant rise from the previous year's rate and signals a rebound from recent declines in interest rates.

Previously, in March 2023, EPFO had marginally increased the interest rate on EPF to 8.15 per cent for the fiscal year 2022-23, a modest uptick from the 8.10 per cent rate observed in 2021-22. However, in March 2022, EPFO lowered the interest rate on EPF to an over four-decade low of 8.1 per cent for the fiscal year 2021-22, down from 8.5 per cent in 2020-21.

The decision to fix the interest rate at 8.25 per cent for 2023-24 was made by EPFO's apex decision-making body, the Central Board of Trustees (CBT), during its recent meeting. This rate is subject to ratification by the Ministry of Finance before it is officially implemented.

"The EPFO's apex decision-making body Central Board of Trustees (CBT) has decided to provide 8.25 per cent rate of interest on EPF for 2023-24 at its meeting on Saturday,” the source mentioned in the report said.

Historically, EPFO's interest rates have varied. In March 2021, the CBT set the interest rate at 8.5 per cent for the fiscal year 2020-21. However, in March 2020, EPFO reduced the interest rate to a seven-year low of 8.5 per cent for 2019-20, down from 8.65 per cent in 2018-19.

The trend of fluctuating interest rates extends further back, with EPFO providing 8.65 per cent interest rates to subscribers in 2016-17 and 8.55 per cent in 2017-18. Rates were slightly higher at 8.8 per cent in 2015-16. Notably, EPFO had offered a rate of 8.75 per cent in both 2013-14 and 2014-15, exceeding the 8.5 per cent rate observed in 2012-13. The rate of interest was 8.25 per cent in 2011-12.

(With PTI inputs.)