The Union Finance Ministry has approved a rise in the interest rate for Employees' Provident Fund (EPF) deposits, benefiting the nation's 70 million EPFO members. Initially proposed at 8.25 percent for the fiscal year 2023-24 by the Employees' Provident Fund Organisation (EPFO) in February, this rate has now been formally endorsed.
Last year, the interest rate stood at 8.15%, but in February this year, the Employees' Provident Fund Organisation (EPFO) announced a higher rate of 8.25% for the financial year 2023-24. Confirming this, EPFO informed the social media platform X that the government has now officially approved the 8.25% interest rate for EPF members for the upcoming fiscal year.
In February, the Central Board of Trustees (CBT), the apex body of EPFO, announced a hike in the interest rate on Provident Fund (PF) deposits for the financial year 2023-24. The decision raises the annual interest rate from 8.15% to 8.25%.
The EPFO announces the interest rates on PF accounts for private sector employees annually. With approximately 7 crore registered members under the Employees' Provident Fund Organisation, the Finance Ministry makes the ultimate decision following EPFO's determination of the interest rate. Interest on Employees' Provident Fund Accounts is disbursed once a year, typically on March 31st.