New Delhi: EPFO interest rate for FY24 will be credited at 8.25 per cent, the finance ministry said in an official statement. The EPFO’s central board cleared an 8.25 per cent interest rate for PF subscribers in February 2024. This has now received the finance ministry’s nod.
The finance ministry has increased the EPFO’s interest rate by 20 basis points to 8.25 per cent from 8.15 per cent in the previous year. The new interest rate will kick in from May 2024.
This means that the EPFO will credit a record Rs 1.07,00 crore interest to a cumulative principal amount of Rs 13 lakh crore, according to a PIB notification. This is the highest interest payout on record. In FY23, the EPFO paid an interest rate of RS 91,151.66 crore on a principal amount of Rs 11.02 lakh crore.
When will EPF subscribers receive FY24 interest?
EPFO said it notify us when the interest for FY24 will be credited. The pension fund body reassured subscribers that the interest would be credited in full and there would be no loss of interest. As of March 2024, EPFO had credited the interest rate for FY23 to 28.17 crore members’ accounts.
“All continuing EPF members will also receive a credit of interest declared on the compilation of annual statement of accounts,” the EPFO said in a post on social media platform X. So far, the pension fund body has settled 23,04,516 claims worth Rs 92,60,40,35,488, which includes the 8.25 per cent interest payout.
The EPFO said it had already started crediting interest payouts to members’ accounts at 8.25 per cent per annum. Since the rate of interest is determined based on returns from debt and equity instruments, the EPFO revised its interest payout for FY24 at 8.25 per cent. This received the finance ministry’s nod in May 2024.
EPFO has already started settling claims @ 8.25% per annum.
Rate of interest is calculated on the basis of income from debt and equity investment of EPFO.
— EPFO (@socialepfo) July 11, 2024
EPFO interest rate: The entre has given its nod to EPFO governing board’s decision of paying an 8.25 per cent interest on PF contributions in FY24. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
