The interest rate on deposits of PF account holders was increased by 0.05% from 8.10% to 8.15% for the financial year 2022-23. It is likely to recommend an interest rate of around 8% for FY2024.
The Central Board of Trustees (CBT) of the Employees’ Provident Fund Organization (EPFO) is scheduled to meet on Saturday. This meeting may bring bad news for PF account holders. There are reports that the PF interest rate may be revised in the CBT meeting. If this happens then more than 6 crore PF account holders will be affected. This is also important because Lok Sabha elections are going to be held in the next few months.
Interest rate recommendation of 8%: According to the Economic Times report, the Central Board of Trustees (CBT) of EPFO is likely to recommend an interest rate of around 8% for FY 2024 in its meeting to be held on Saturday. Apart from this, EPFO is also likely to seek board approval to increase its investment in shares from about 10% to 15% now to increase returns on investment. In this meeting, discussion on pension, budgetary estimates and compliance issues is also possible. According to the news of Business Standard, in the CBT meeting, there can be discussion on implementation of the Supreme Court order regarding high pension, recruitment on vacant posts in EPFO and transfer of employees.
What is the interest rate now
The interest rate on deposits of PF account holders was increased by 0.05% from 8.10% to 8.15% for the financial year 2022-23. Let us tell you that the interest rate on PF is determined on the basis of withdrawals made by EPF members during the year, contributions received from EPF accounts and income earned during the year.
When will it be announced: This time it is not yet clear whether the interest rate on provident fund will be announced publicly immediately or it will be announced after permission from the Finance Ministry as per the new guidelines. In July last year, the Labor Ministry had asked the Central Trustee Board not to publicly announce the interest rates for the financial year 2023-24 without the prior permission of the Finance Ministry.
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