EPFO Raises Interest Rate on PF Deposits to 8.25%, A Three Year High

During a meeting of the Central Board of Trustees (CBT), the apex decision-making body of the Employees’ Provident Fund Organization (EPFO), it was decided to increase the interest rate on employees’ provident fund (EPF) deposits to 8.25% for the fiscal year 2023-24. This marks a three-year high for the interest rate on EPF deposits.

EPF Interest Rate Trends

• In March 2023, the interest rate on EPF was marginally increased to 8.15% for the fiscal year 2022-23, up from 8.10% in the previous fiscal year.
• However, in March 2022, the EPFO had lowered the interest rate on EPF to 8.1%, the lowest in over four decades, for the fiscal year 2021-22, down from 8.5% in 2020-21.
• The interest rate on EPF for the fiscal year 2020-21 was set at 8.5% by the CBT in March 2021.

Current Decision

• The CBT has decided to hike the interest rate on EPF deposits to 8.25% for the fiscal year 2023-24, marking a three-year high.
• This decision is a positive development for over six crore subscribers of the EPFO.