EPF recommends 8.25 % rate of interest to EPF subscribers for FY2023-24

EPF recommends 8.25 % rate of interest to EPF subscribers for FY2023-24

The Central Board Trustees (CBT) EPF recommends 8.25 % rate of interest to EPF subscribers for FY2023-24

The 235th meeting of Central Board of Trustees, EPF was held today on 10th February 2024 in Delhi under the Chairmanship of Shri Bhupender Yadav, Union Minister for Labour & Employment and Environment, Forest & Climate Change. The Vice-Chairman Shri Rameshwar Teli, Union Minister of State for Labour & Employment, Petroleum & Natural Gas and Co-Vice-Chairpersons Ms. Arti Ahuja, Secretary Labour & Employment and the Member Secretary Smt. Neelam Shami Rao, Central P F Commissioner were also present during the meeting.

The Central Board recommended an annual rate of interest of 8.25% to be credited on EPF accumulations in members’ accounts for the financial year 2023-24. This interest rate will be officially notified in the government gazette after approval by the Ministry of Finance. Subsequently, EPFO will credit the approved rate of interest into its subscribers’ accounts.

The Board has  recommended a distribution of historic income amount of Rs. 1,07,000 crores to EPF members’ accounts on a total principal amount of about Rs. 13 lakh crores, which was Rs. 91,151.66 crores and Rs. 11.02 lakh crores in the financial year 2022-23, respectively. The total income recommended for distribution is the highest on record.

Comparing to the previous financial year, there has been significant growth. The income has grown by more than 17.39%, while the principal amount has increased by 17.97%. This suggests a healthy financial performance and potentially strong returns for the members.

EPFO has a strong track record of distributing higher income to its members over the years with prudence. The interest rate offered by EPFO tends to be higher compared to other comparable investment avenues available to subscribers. This indicates confidence in the credit profile of EPFO’s investments, as well as its ability to provide attractive returns to its members.

PIB