The revised rates of interest have been applied to current and former members in their final PF settlements. Those members who opted for final settlements during the financial year 2023-24 and the beginning of FY2024-25 will not incur any losses, as they will receive the difference in interest.
Good news for EPF members. The Ministry of Finance has notified the EPF interest rate at 8.25% for FY2023-24. It may be noted that the Central Board of Trustees (CBT) of the Employees’ Provident Fund Organization (EPFO) had in February this year suggested an annual interest rate of 8.25% for the FY2023–24. This proposal was made during the 235th meeting of the Board in Delhi, was sent to the Ministry of Labour & Employment for forwarding to the Ministry of Finance for approval.
Also Read– Latest personal loan interest rates: SBI, PNB, Bank of Baroda, HDFC Bank, ICICI Bank
In a social media post on Thursday, the EPFO said that the rate of interest is typically announced after the conclusion of the financial year in the first quarter of the following financial year. This year’s interest rate is the highest in recent memory, providing greater benefits to members compared to other small-scale savings, GPF, and PPF interest rates.
“The revised rates of interest have been applied to current and former members in their final PF settlements. Those members who opted for final settlements during the financial year 2023-24 and the beginning of FY2024-25 will not incur any losses, as they will receive the difference in interest. Additionally, all active EPF members will also be credited with interest at a rate of 8.25% for the financial year 2023-24,” it said.
Read More: State Bank of India To Offer Online Loan Against Mutual Funds
EPFO said that it has commenced processing claims at an annual interest rate of 8.25%. The interest rate is determined based on the earnings from EPFO’s debt and equity investments.
While the interest income from debt instruments is projected at the start of the fiscal year, the income from equity investment is only known after the redemption of equity during the fiscal year.
The Ministry of Finance had in May this year given approval for an annual interest rate of 8.25%. Subsequently, the Ministry of Labour has informed the same through letter No R/11018/01/2023-SS-II dated 24.05.2024, which has been relayed to the field offices for the settlement of claims and the crediting of interest in the members’ PF account.
The interest at the revised rates, since the notification, is being paid to the current and outgoing members in their final PF settlements. As a result, 23,04,516 claims have been settled, disbursing an amount of Rs. 9260,40,35,488 to the members, inclusive of the latest interest rate declared at 8.25% per annum.
