The Union Finance Ministry has approved an increase in the interest rate on Employees’ Provident Fund (EPFO) deposits from 8.15% to 8.25% for the financial year 2023-24.
This decision was made by the Narendra Modi government ahead of Budget 2024.
The Finance Ministry’s decision to raise the PF interest rate before the budget will benefit 70 million EPFO members across the country.
Earlier in February this year, the Employees Provident Fund Organization (EPFO) had proposed an 8.25 percent interest rate for the fiscal year 2023-24, which has now been officially approved by the Finance Ministry.
EPFO gave information about the increased interest rate of PF on Twitter
EPFO announced the increased PF interest rate on social media platform X (formerly Twitter).
They stated that the government has officially notified an interest rate of 8.25% for EPF members in the upcoming financial year.
Employees are now eagerly awaiting the crediting of the PF interest to their accounts.
In February, the EPFO Central Board of Trustees (CBT) announced an increase in the interest rate on Provident Fund (PF) deposits for the financial year 2023-24.
As a result of this decision, the annual interest rate has been raised from 8.15% to 8.25%.
EPFO has already started settling claims @ 8.25% per annum.
Rate of interest is calculated on the basis of income from debt and equity investment of EPFO.— EPFO (@socialepfo) July 11, 2024
Know what was the interest rate on PF in the last few years?
On March 28, 2023, the EPFO interest rate was 8.15%. However, in February of the following year, the Employees Provident Fund Organisation (EPFO) announced an interest rate of 8.25% for the financial year 2023-24.
In March 2022, EPFO surprised about 70 million employees by reducing the interest rate to a four-decade low of 8.1% for the financial year 2021-22. The rate was previously 8.5% in 2020-21.
PF Interest: Know when you get interest?
EPFO announces the interest rate annually for the PF accounts of employees in the private sector.
There are approximately 70 million registered employees under the Employees Provident Fund Organization.
After EPFO decides on the interest rate, the Finance Ministry makes the final decision. Interest on PF accounts is typically paid once a year, usually on March 31st.
