EPFO Raises Interest Rate to 8.25% for 2023-24, Marking a 3-Year High

In a significant move, the Employees' Provident Fund Organisation (EPFO) has declared an interest rate of 8.25% on employees' provident fund (EPF) deposits for the fiscal year 2023-24, marking a three-year high. This decision was made during the meeting of EPFO's apex decision-making body, the Central Board of Trustees (CBT), held on Saturday.

For the preceding fiscal year 2022-23, the interest rate was set at 8.15%, indicating a positive shift for the contributors to the EPF. Notably, in March 2023, EPFO had raised the interest rate marginally to 8.15% for 2022-23 from 8.10% in 2021-22.

It's worth recalling that in March 2022, EPFO had reduced the interest on EPF to a historic low of 8.1% for the financial year 2021-22, down from 8.5% in 2020-21, marking the lowest rate since 1977-78 when the interest rate stood at 8%.

The recent decision of offering an 8.25% interest rate for 2023-24 will now undergo the process of seeking concurrence from the Ministry of Finance. After receiving the government's approval, the revised interest rate will be credited to the accounts of over six crore EPFO subscribers.

The interest rate on EPF deposits is a critical aspect for millions of contributors, and it is only finalized after government ratification through the finance ministry. In March 2020, the EPFO had lowered the interest rate to a seven-year low of 8.5% for 2019-20, having provided 8.65% for 2018-19.

Over the years, the EPFO interest rate has seen fluctuations, and the recent decision to set it at 8.25% for 2023-24 comes as positive news for EPF subscribers, offering a higher return on their provident fund deposits.