In a recent decision, the Central Board of Trustees (CBT) of the Employees’ Provident Fund Organization (EPFO) has proposed an interest rate of 8.25% on Employees Provident Fund (EPF) deposits for the financial year 2023-24. This potential increase from the previous year’s 8.15% comes after the rate was set at a four-decade low of 8.1% in March 2022.
The decision made during the CBT meeting will now be forwarded to the Finance Ministry for approval. Once approved by the government, the proposed interest rate will be credited to the accounts of more than six crore EPFO subscribers.
It is noteworthy that EPFO interest rates are subject to government approval through the Finance Ministry. In the past, the EPFO had reduced the interest rate to 8.5% in March 2020 for the financial year 2019-20, marking a seven-year low, down from 8.65% in 2018-19.
The interest rate history of EPFO includes fluctuations, with rates of 8.65% in 2016-17 and 8.55% in 2017-18. The financial year 2015-16 saw a slightly higher interest rate at 8.8%. Higher rates of 8.75% were granted in 2013-14 and 2014-15, compared to 8.5% in 2012-13. In 2011-12, the interest rate was set at 8.25%.
