EPFO hikes interest rate to 3 year high

Retirement fund body EPFO has hiked the interest rate on employees' provident fund (EPF) deposits for 2023-24 to 8.25%, a three-year-high. The decision, seems election gimmick, was made during a meeting of the EPFO's apex decision-making body, the Central Board of Trustees (CBT), on Saturday.

This move comes after the EPFO marginally increased the interest rate on EPF in March 2023 to 8.15% for the fiscal year 2022-23, up from 8.10% in 2021-22. However, in March 2022, the EPFO had lowered the interest rate on EPF to an over four-decade low of 8.1% for 2021-22, down from 8.5% in 2020-21.

The 8.25% interest rate for 2023-24 is a positive development for over six crore subscribers of the EPFO. It is worth noting that the interest rate on EPF for 2020-21 was set at 8.5% by the CBT in March 2021.

A source within the EPFO stated, "The EPFO's apex decision-making body Central Board of Trustees (CBT) has decided to provide 8.25% rate of interest on EPF for 2023-24 at its meeting on Saturday." After the CBT's decision, the interest rate on EPF deposits for the upcoming fiscal year will be forwarded to the Ministry of Finance for concurrence.