PF interest rate set at 8.25% for FY24, the highest in three years; payout to top ₹1 lakh cr
Fund Organisation (EPFO) has fixed 8.25% interest rate on provident fund deposits for 2023-24, the highest in three years, following the approval of its central board of trustees at its meeting on Saturday.
For 2022-23, the retirement fund body offered 8.15% interest, higher than 8.10% in 2021-22.
The interest rate for 2023-24 will be officially notified after approval from the finance ministry, following which EPFO will credit the interest to subscribers' accounts at the end of the financial year.
«The move is a step towards fulfilling PM Narendra Modi's guarantee of strengthening social security for India's workforce,» said labour and employment minister Bhupender Yadav in a post on social media platform X. The labour minister is the chairman of the central board of trustees of EPFO.
The increase in interest rate by the EPFO comes on the back of strong financial returns earned by the retirement fund body this year, including on its investments in equity, and almost negligible Covid-19 withdrawals, officials said. EPFO's earnings in 2023-24 stand at ₹13 lakh crore, up 17.97% from ₹11.02 lakh crore in 2022-23, the labour and employment ministry said in a statement.
Total payout of interest for this fiscal is pegged at ₹1,07,000 crore, 17.39% higher than ₹91,151.66 crore in 2022-23, it said.
«The total income recommended for distribution has crossed ₹1 lakh crore for the first time. This suggests a healthy financial performance and potentially strong return for its members,» the ministry said.
The payout of
