Finance Ministry approved 8.25% EPF interest rate for FY 2023-24

0
Finance Ministry approved 8.25% EPF interest rate for FY2023-24
The proposed interest rate was pending for the Ministry of Finance's approval. After approval now EFP Interest Rate has been officially notified.

One of the World’s largest Social Security Organisations, Employees’ Provident Fund Organisation (EPFO) had proposed EPF Interest Rate of 8.25 % for FY 2023-24.

The Central Board recommended an annual interest rate of 8.25% to be credited on EPF accumulations in members’ accounts for the financial year 2023-24.

The proposed interest rate was pending for the Ministry of Finance’s approval. After approval now EFP Interest Rate has been officially notified.

On May 24, 2024, EPFO got approval from the Finance Ministry and released a circular mentioning that-

“The Ministry of Labour and Employment, Government of India, has conveyed the approval of the Central Government under para 60(1) of Employees’ Provident Fund Scheme, 1952 to credit interest @8.25% for the year 2023-24 to the account of each member of the EPF Scheme,” the Circular says.

It is also mentioned in Circular, “A copy of Ministry of Finance, Department of Economic Affairs, OM No.12 (4)- B(PD) 12024 dated 05.05 is enclosed for ready reference.”

After notification, 8.33% also applies to VPF deposits, and exempted trusts must credit the same rate as EPFO to employees, ensuring uniform benefits across all provident fund contributions.

Also, Watch- Top Qualities that HR Looks for While Hiring Candidates, Click Here

In 2021-2022 and 2022-2023, the EPF interest rates were 8.1 per cent and 8.15 per cent, respectively, which means the 2023-2024 interest rate is the highest in three years.

The interest rate of EPF is reviewed every year. The interest rates are fixed based on the earnings of the retirement fund body on the deposits it has.

The Employees’ Provident Fund is a compulsory savings scheme for salaried employees in organizations with 20 or more workers, ensuring financial security through mandatory contributions from both employees and employers.

Note: We are also on WhatsApp, LinkedIn, and YouTube, to get the latest news updates, Join our Channels. WhatsApp– Click hereto subscribe to YouTube – Click Here, and for LinkedIn– Click Here

LEAVE A REPLY

Please enter your comment!
Please enter your name here