The Employees’ Provident Fund Organisation (EPFO) on Saturday fixed a three-year high interest rate of 8.25% on employees’ provident fund (EPF) deposits for 2023-24.
In March 2021, the Central Board of Trustees (CBT) decided the 8.5% interest rate on EPF deposits for 2020-21.
After the CBT’s decision, the interest rate on EPF deposits for 2023-24 will be sent to Ministry of Finance for concurrence.
After the government’s ratification, the interest rate on EPF for 2023-24 will be credited into accounts of over six crore subscribers of EPFO.
Notably, in March 2023, the EPFO had increased the interest rate on EPF marginally to 8.15% for 2022-23 from 8.10% in 2021-22.
Later in March 2022, EPFO had lowered the interest on EPF for 2021-22 to an over four-decade low of 8.1% for its over six crore subscribers, from 8.5% in 2020-21.
This was the lowest since 1977-78, when the EPF interest rate stood at 8%.
Earlier in March 2020, EPFO had lowered the interest rate on provident fund deposits to a seven-year low of 8.5% for 2019-20, from 8.65% provided for 2018-19.
EPFO had provided 8.65% interest rate to its subscribers in 2016-17 and 8.55% in 2017-18.
The rate of interest was slightly higher at 8.8% in 2015-16.
EPFO provides the rate of interest only after it is ratified by the government through the finance ministry.