This has been announced in the important meeting of the Central Board of Trustees held on Saturday. EPFO has increased the interest rates to 8.25 percent for the year 2023-24. Which was at 8.15 percent for the previous financial year.
For the year 2023-24, you are going to get more interest on deposits in your PF account than before. The increase in interest rates has been approved in the important meeting of the Central Board of Trustees of EPFO i.e. Employee Provident Fund Organization held on Saturday. According to the news received from sources, as per the decision of the board, the interest rates for the year 2023-24 have been increased to 8.25 percent. Which was at 8.15 percent for the previous financial year. The board had already given indications of increasing the rates. Earlier, while giving information about the meeting, EPFO had said that considering the impact of inflation, an increase in rates is possible this time. More than 6.5 crore salaried people of the country will benefit from this decision.
Benefited from better returns
The main reason for the increase in rates is the high returns that EPFO gets on its investments. According to ET news, there has been an increase in investments made in equity and other investments during the financial year. During this period, the amount withdrawn on account of Covid has been negligible. Due to which the fund had scope to distribute more amount. The proposed rates have been approved in the meeting of the trustees of EPFO, this meeting was presided over by Labor Minister Bhupendra Yadav. The meeting held on Saturday was the 235th meeting of the trustees.
After approval by the Board, the proposal will be sent to the Finance Ministry and after getting approval from the Ministry, the interest will be deposited in the subscriber’s account. Last year also in March 2023, there was a slight increase in the interest on EPF accounts from 8.1 percent to 8.15 percent.
What is EPF?
EPF i.e. Employee Provident Fund helps in creating the necessary fund for the secure future of salaried employees in which employees deposit a part of their salary regularly and a regular share is also taken from the employing organization. Under the EPF&MP Act, an employee deposits 12 percent of his salary in the EPF account every month and the same amount is deposited by the organization employing him. The entire money of the employee is deposited in the EPF account but out of 12 percent, 8.33 percent goes to EPS. Through EPF, an employee gets a good amount of money on retirement and he can also withdraw money from this fund up to a certain limit for some needs during his job.
