New Delhi, Feb 10: In a decision that will benefit millions of formal sector employees, the Central Board of Trustees (CBT) of the Employees' Provident Fund Organisation (EPFO) has recommended an interest rate of 8.25% for 2023-24.
This interest rate, once approved by the Finance Ministry, will be credited to the EPFO accounts of over 65 million subscribers.
The proposed rate is higher than the 8.15% provided in 2022-23 and will distribute a historic income amount of Rs 1.07 lakh crore to members.
Announcing the decision, Labour Minister Bhupendra Yadav said this fulfils PM Modi's commitment to strengthening social security for India's workforce.
The income to be distributed in 2023-24 has grown 17.39% over last year while the total EPF corpus saw a 17.97% increase to Rs 13 lakh crore.
Experts say the higher income distribution indicates EPFO's healthy finances and ability to provide attractive returns to subscribers. The interest rate is also higher than other comparable investment options.
EPFO has consistently delivered superior returns over the years, benefitting millions of salaried employees. Its prudent investments across instruments ensure the stability of income.
With this decision, the EPFO continues to be a reliable instrument of social security. Employees can look forward to a higher interest accrual in their retirement savings.