Comments
Central Board of Trustees (CBT) of Employees Provident Fund Organisation (EPFO) has recommended 8.25 per cent interest rate for fiscal year 2023-24. Once approved this will be highest in three years.
As on date, there are over six crore members of EPFO. Interest rate for Fiscal Year 2022-23 was 8.15 per cent.
Announcing this, Labour Minister Bhupendra Yadav, who is also Chairman of CBT said, “The move is a step towards fulfilling PM Shri @narendramodi ji’s guarantee of strengthening social security for India’s workforce.” After the CBT’s decision, the interest rate on EPF deposits for 2023-24 will be sent to Ministry of Finance for concurrence. After the ratification, the interest rate on EPF for 2023-24 will be credited into accounts of subscribers of EPFO.
- Also read:Pension fund regulator invites bids for selection of system integrator for compliance e-platform
The Board has recommended a distribution of Rs. 1.07 lakh crores to EPF members’ accounts on a total principal amount of about Rs. 13 lakh crores, which was over Rs. 91000 crores and Rs. 11.02 lakh crores in the financial year 2022-23, respectively. The total income recommended for distribution is the highest on record, a statement issued by the labour Ministry said
Further, it said that comparing to the previous financial year, there has been significant growth. The income has grown by more than 17.39 per cent, while the principal amount has increased by 17.97 per cent. This suggests a healthy financial performance and potentially strong returns for the members, said the statement.
“EPFO has a strong track record of distributing higher income to its members over the years with prudence. The interest rate offered by 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 statement said.
In March 2023, the EPFO had increased the interest rate on EPF marginally to 8.15 per cent for 2022-23 from 8.10 per cent in 2021-22. In March 2022, EPFO had lowered the interest on EPF for 2021-22 to an over four-decade low of 8.1 per cent, from 8.5 per cent in 2020-21. In March 2020, EPFO had lowered the interest rate on provident fund deposits to a seven-year low of 8.5 per cent for 2019-20, from 8.65 per cent provided for 2018-19.EPFO had provided 8.65 per cent interest rate to its subscribers in 2016-17 and 8.55 per cent in 2017-18. The rate of interest was slightly higher at 8.8 per cent in 2015-16. The retirement fund body had given 8.75 per cent rate of interest in 2013-14 as well as 2014-15, higher than 8.5 per cent for 2012-13. The rate of interest was 8.25 per cent in 2011-12.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.