The Employees' Provident Fund Organisation (EPFO) has announced an 8.25% interest rate on Employees' Provident Fund (EPF) deposits for the financial year 2023-24. This marks a three-year high and maintains the previous year's marginal increase from 8.10%.
In March 2022, the EPFO had reduced the interest rate to a four-decade low of 8.1% for 2021-22, down from 8.5% in 2020-21. The Central Board of Trustees (CBT), the EPFO's apex decision-making body, made the decision to provide the 8.25% interest rate for 2023-24 at its recent meeting.
The interest rate of 8.5% for 2020-21 was set by the CBT in March 2021. Following the CBT's decision, the interest rate for 2023-24 will be submitted to the Ministry of Finance for approval. Once ratified by the government, the interest rate will be credited to the accounts of EPFO's over six crore subscribers.
EPFO determines the interest rate after government approval through the finance ministry. Previous interest rates include 8.65% in 2016-17, 8.55% in 2017-18, and 8.8% in 2015-16.
In 2013-14 and 2014-15, the EPFO provided an interest rate of 8.75%, higher than the 8.5% in 2012-13, and 8.25% in 2011-12.