Employees’ Provident Fund Organization (EPFO) has announced the increase in interest rates for the financial year 2023-24. Now employees will be given more interest than last year.
The Central Board of Trustees (CBT) of the Employees’ Provident Fund Organization (EPFO) has announced the interest rate for the Employees’ Provident Fund (EPF) account for 2023-24. EPFO has increased the interest rate for crores of employees for the current financial year. According to news agency PTI, now employees will get 0.10 percent more interest than before. This means that now an interest rate of 8.25% will be given on your PF account.
On March 28 last year, EPFO had announced an interest rate of 8.15 percent for Employees Provident Fund (EPF) accounts for 2022-23. Whereas EPFO had given interest of 8.10% for FY22.
CBT decided to increase interest
According to PTI, the Central Board of Trustees (CBT), the top decision-making body of EPFO, in its meeting on Saturday has decided to give 8.25 percent interest rate on EPF for 2023-24. After the decision of CBT, the interest rate on EPF deposits for 2023-24 will be sent to the Finance Ministry for consent.
When EPFO reduced the interest
In March 2022, EPFO had reduced the interest on EPF for 2021-22 to a four-decade low of 8.1 percent for about 7 crore employees, which was 8.5 percent in 2020-21. After the interest cut, EPF interest became the lowest since 1977-78. In the financial year 1977-78, the EPF interest rate was 8 percent. The 8.5 percent interest rate on EPF deposits for 2020-21 was fixed by the CBT in March 2021.
Interest was reduced this year also
In March 2020 also, EPFO had reduced the interest rate on provident fund deposits (EPF Deposit) for 2019-20 to a seven-year low of 8.5 percent, which was 8.65 percent for 2018-19. EPFO had given 8.65 percent interest rate to its customers in 2016-17 and 8.55 percent in 2017-18. Whereas in 2015-16 the interest rate was slightly higher at 8.8 percent. Apart from this, EPFO had given 8.75 percent interest rate in 2013-14 as well as 2014-15.
About 7 crore employees registered
It is noteworthy that EPFO announces the interest rate every year on the PF account of employees working in the private sector. About 7 crore employees are connected under the Employees Provident Fund Organization. After fixing the interest of EPFO, the Finance Ministry takes the final decision. Interest on Employees Provident Fund account is paid once a year on 31st March.
