EPFO hikes interest rate 8.25%: Employees’ Provident Fund Organization On Saturday, the EPFO Board decided to increase the interest rate on the Provident Fund to 8.25% for the year 2023-24. Through this, additional interest income is available on the money in the EPF account.
With the general elections in India approaching, the central government was expected to make a major announcement in the budget, leaving the common man largely disappointed.
In this situation, the central government has increased the interest rate on EPF account to benefit many people. This one notification can attract all the monthly salary earners. But the election is not the only reason for the current rate hike.
EPFO Increased 8.25% for the Year 2023-24
It is to be noted that while the central government has increased the interest rate on EPF account to 8.25% for the year 2023-24, it was 8.15% in the previous year and 8.10% in 2021-22. More than 6.5 crore EPFO subscribers will benefit from this interest rate hike.
This interest rate hike has been announced due to the excellent returns on EPFO investments this year. EPFO invests the money coming into the EPF account in various sectors like government bonds, stock market and the income is given as interest income to the EPFO subscribers.
Why epfo interest increased?
Both stock market investment and government bond investment have given high returns to its investors in the last one year. Due to this, the current interest rate on PF account has been increased to 8.25% for the year 2023-24.
The central board of trustees of EPFO, headed by labor and employment minister Bhupender Yadav, proposed the interest rate hike in the 235th executive committee meeting of EPFO on Saturday.
The Finance Ministry will have to approve the request, after which the interest rate will be officially announced. EPFO will then credit the interest rate to its subscribers’ accounts later in the next financial year.