Good News: EPFO Raises Interest Rate From 8.15% To 8.25% For 2023-24; Sets Three-Year High

In a welcome move for the salaried class, the Employees Provident Fund Organization (EPFO) has increased the interest rate on PF deposits to 8.25% for the financial year 2023-24, providing a boost to over six and a half crore subscribers. This marks a 10 basis points rise from the previous year’s rate of 8.15%.

The decision was approved by the Central Board of Trustees (CBT) of EPFO in its 235th board meeting, headed by Labor and Employment Minister Bhupendra Yadav. 

While an official notification is pending, the increased interest rate will apply to the Voluntary Provident Fund (VPF) and trusts eligible for exemptions under the rules.

The EPF, a social security scheme mandatory for companies with 20 or more employees, sees a 12% monthly salary contribution from both employees and employers. 

The increased interest rate will benefit subscribers, providing financial security after retirement. 

This move comes as positive news for the working population, especially after the recent budget did not bring anticipated changes to income tax slabs for the salaried class.