Central Board of Trustees Recommends 8.25% Interest Rate on EPF for FY 2023-24

New Delhi: The 235th meeting of the Central Board of Trustees, EPF, was convened today in Delhi under the leadership of Shri Bhupender Yadav, Union Minister for Labour & Employment and Environment, Forest & Climate Change. The meeting, attended by key dignitaries including Vice-Chairman Shri Rameshwar Teli, Union Minister of State for Labour & Employment, Petroleum & Natural Gas, Co-Vice-Chairpersons Ms. Arti Ahuja, Secretary Labour & Employment, and Member Secretary Smt. Neelam Shami Rao, Central P F Commissioner, witnessed significant recommendations for the financial year 2023-24.

The Central Board proposed an annual interest rate of 8.25% to be credited to EPF accumulations in members’ accounts. This recommendation, subject to approval by the Ministry of Finance, will be officially notified in the government gazette. EPFO is poised to credit the approved interest rate into the accounts of its subscribers following the requisite approvals.

The Board has proposed the distribution of a historic income amounting to Rs. 1,07,000 crores to EPF members’ accounts. This distribution is based on a total principal amount of about Rs. 13 lakh crores, indicating substantial growth compared to the financial year 2022-23, which saw Rs. 91,151.66 crores distributed on a principal amount of Rs. 11.02 lakh crores. The total income recommended for distribution in the current financial year represents a record high.

In comparison to the previous financial year, there has been a notable growth of over 17.39% in income and a corresponding 17.97% increase in the principal amount. This robust financial performance indicates potential strong returns for EPF members.

EPFO’s consistent track record of distributing higher income to its members reflects prudence and financial stability. The interest rate offered by EPFO is consistently competitive, underscoring confidence in the credit profile of EPFO’s investments and its commitment to delivering attractive returns to its members.