EPFO announces 8.25% interest rate on employees' provident fund for 2023-24, highest in three years

In a move set to benefit millions of employees across the nation, the Employees’ Provident Fund Organisation (EPFO) has declared a significant hike in the interest rate on employees’ provident fund (EPF) deposits for the fiscal year 2023-24. The decision, reached during the EPFO's apex decision-making body, the Central Board of Trustees (CBT) meeting on February 10, sets the interest rate at 8.25 per cent, marking a notable increase from the previous year's rate.

The increment from the previous year's interest rate of 8.15 per cent for 2022-23 to the current rate of 8.25 per cent for 2023-24 signifies a positive turn for EPF subscribers. This upward trend in interest rates comes after a series of fluctuations in recent years. In March 2022, EPFO had lowered the interest rate on EPF for the fiscal year 2021-22 to an over four-decade low of 8.1 per cent, down from 8.5 per cent in 2020-21, marking the lowest rate since 1977-78.

"The decision to provide a rate of interest of 8.25 per cent on EPF for 2023-24 was made by the Central Board of Trustees (CBT) during its recent meeting," a source familiar with the matter stated.

This decision by the CBT now awaits further approval from the Ministry of Finance. Once ratified by the government, the enhanced interest rate for 2023-24 will be credited into the accounts of over six crore subscribers of EPFO, providing them with a significant boost in their retirement savings.