February 10, 2024: The central board of the Employees Provident Fund Organisation (EPFO) today recommended an annual rate of interest of 8.25% to be credited on EPF accumulations in members’ accounts for the financial year 2023-24.
The interest rate for EPF contributions for FY24 is 10 basis points higher than the 8.15% interest rate for FY23.
This interest rate will be officially notified in the government gazette after the Ministry of Finance approval. Subsequently, the EPFO will credit the approved interest rate to its subscribers’ accounts.
The decision was taken at the 235th meeting of the Central Board of Trustees in Delhi under the chairmanship of Union Minister for Labour and Employment Bhupender Yadav.
“The board has recommended a distribution of historic income amount of Rs 1,07,000 crore to EPF members’ accounts on a total principal amount of about Rs. 13 lakh crore, which was Rs 91,151.66 crore and Rs. 11.02 lakh crore in the financial year 2022-23, respectively. The total income recommended for distribution is the highest on record,” Ministry of Labour & Employment.
Compared to the previous financial year, there has been significant growth. The income has grown by more than 17.39%, while the principal amount has increased by 17.97%. This suggests a healthy financial performance and potentially strong returns for the members.
“The EPFO has a strong track record of distributing higher income to its members over the years with prudence. The interest rate offered by the EPFO tends to be higher compared to other comparable investment avenues available to subscribers. This indicates confidence in the credit profile of EPFO’s investments as well as its ability to provide attractive returns to its members,” the ministry added in the statement.
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