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EPFO Raises EPF Interest Rate to 8.25%

  • 12 Feb 2024

The Employees' Provident Fund Organization (EPFO) has increased the interest rate on employees' provident fund (EPF) deposits to 8.25% for the fiscal year 2023-24, marking a three-year high, following a decision made during a meeting of its apex decision-making body, the Central Board of Trustees (CBT), on 10th February, 2024.

Key Points

  • Historical Context: The hike follows a marginal increase in the interest rate in March 2023 to 8.15% for the fiscal year 2022-23, compared to 8.10% in 2021-22.
  • However, in March 2022, the interest rate was reduced to 8.1%, the lowest in over four decades, down from 8.5% in 2020-21.
  • Approval Process: The decision to set the interest rate at 8.25% for 2023-24 was made by the EPFO's apex decision-making body, the CBT. The finalized rate will be forwarded to the Ministry of Finance for concurrence.
  • Significance: The 8.25% interest rate is a significant development for over six crore EPF subscribers, providing them with improved returns on their deposits for the upcoming fiscal year.