A big update regarding the Employees Provident Fund (EPF) has come out. About 6 crore EPFO employees have received a gift of interest rate. Employees Provident Fund Organization (EPFO) has announced an increase in the interest rate to 8.25 per cent for 2023-24. With this, employees will receive more interest than last year.
This is the highest interest rate in three years. The interest rate for 2022-23 was 8.15 per cent, for 2021-22 8.10 per cent, for 2020-21 8.5 per cent, and now for 2023-24 8.15 per cent. The Central Board of Trustees (CBT), EPFO’s decision-making body, decided to increase the interest rate in an important meeting held on Saturday.
Proposal-Papers Ready Will Be Sent To Finance Ministry
According to EPFO sources, an essential CBT meeting was called on Saturday, in which the committee, after much discussion, decided to increase the interest rate to 8.25 per cent. The proposal and documents have been prepared and will be sent to the Finance Ministry. The decision will be implemented once approval is received, and the new rate will be deposited in the customers’ accounts. Although it is also being called a gift from BJP’s Modi government in the election year, a meeting is called by EPFO every year regarding interest rates.
About 6 Crore EPFO Customers Across The Country
According to media reports, about six crore employees nationwide are registered under the Employees Provident Fund Organization. They get interest on the total deposited amount once a year on 31st March. Every year, a meeting is called to decide the interest rates. Employees’ Provident Fund is a government scheme for organizations with 25 or more employees.
Under this, 12 per cent of the employee’s salary is deposited in his PF account every month, and the company deposits the same amount into the employee’s PF accounts. Out of the company’s share, 3.67 per cent is deposited in the PF account, and the remaining 8.33 per cent is deposited in the Employee Pension Scheme (EPS) to give pensions to the employees. Under this scheme, interest is paid on the amount deposited in a year.
EPF Interest Rate In The Last Few Years
According to media reports, the EPF interest rate was the lowest, at 8 percent, in the 1977-78 financial year. Earlier in 2018-19, it was 8.65 percent. In 2016-17, it was 8.65per centt. Meanwhile, the interest rate was 8.55 percent in 2017-18, 8.8 percent in 2015-16, 8.75 percent in 2013-14 and 2014-15, 8.5 percent in 2012-13, and 8.25 percent in 2011-12.
