EPFO fixes 3-year high interest rate of 8.25 pc on employees' provident fund

Retirement fund body EPFO on Saturday fixed a threeyear high interest rate of 825 per cent on employees provident fund EPF deposits for 202324In March 2023 the Employees Provident Fund Organisation EPFO had increased the interest rate on EPF marginally to 815 per cent for 202223 from 810 per cent in 202122In March 2022 EPFO had lowered the interest rate on EPF for 202122 to an over fourdecade low of 81 per cent for its six crore subscribers from 85 per cent in 202021This was the lowest since 197778 when the EPF interest rate stood at 8 per centAccording to a statement by the labour ministry the decision to hike interest rate for 202324 was taken at 235th meeting of Central Board of Trustees CBT of EPFO on Saturday under the chairmanship of Union Labour amp Employment Minister Bhupender YadavThe CBT recommended an annual rate of interest of 825 per cent to be credited on EPF accumulations in members accounts for 202324 This interest rate will be officially notified in the government gazette after approval by Ministry of Finance Subsequently EPFO will credit the approved rate of interest into its subscribers accounts it statedFor FY24 the board recommended distribution of Rs 107000 crore to EPF members accounts on a total principal amount of Rs 13 lakh crore which was Rs 9115166 crore and Rs 1102 lakh crore respectively in 202223Total income recommended for distribution is the highest on record it saidComparing with the previous financial year there has been a significant growth the statement said adding that the income grew by more than 1739 per cent while the principal amount increased by 1797 per centThis suggests a healthy financial performance and potentially strong returns for the members it statedEPFO has a strong track record of distributing higher income to its members over the years with prudenceThe interest rate offered by EPFO tends to be higher compared to other investment avenues available to subscribers it statedThis indicates confidence in the credit profile of EPFOs investments as well as its ability to provide attractive returns to its members it statedIn March 2020 EPFO had lowered the interest rate on provident fund deposits to a sevenyear low of 85 per cent for 201920 from 865 per cent provided for 201819EPFO had provided 865 per cent interest rate to its subscribers in 201617 and 855 per cent in 201718 The rate of interest was slightly higher at 88 per cent in 201516The retirement fund body had given 875 per cent rate of interest in 201314 as well as 201415 higher than 85 per cent for 201213 The rate of interest was 825 per cent in 201112This story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever