The Central Board of Trustees of the Employees' Provident Fund Organisation (EPFO) has recommended an interest rate of 8.25 per cent on Provident Fund deposits for 2023-24.
At present, the interest rate is 8.15 per cent.
"The move is a step towards fulfilling PM Modi's guarantee of strengthening social security for India's workforce," Labour Minister Bhupendra Yadav said.
This interest rate will be officially notified in the government gazette after approval by the Ministry of Finance after which the EPFO will credit the approved rate of interest into its subscribers' accounts, according to an official statement issued after the board meeting held here.
"The Board has recommended a distribution of historic income amount of Rs 1,07,000 crores to EPF members' accounts on a total principal amount of about Rs. 13 lakh crores, which was Rs 91,151.66 crores and Rs 11.02 lakh crores in the financial year 2022-23, respectively. The total income recommended for distribution is the highest on record," the official statement said.
It said that the income has grown by more than 17.39 per cent, while the principal amount has increased by 17.97 per cent compared to the previous financial year. This suggests a healthy financial performance and potentially strong returns for the members.
"EPFO has a strong track record of distributing higher income to its members over the years with prudence. The interest rate offered by EPFO tends to be higher compared to other comparable investment avenues available to subscribers. This indicates confidence in the credit profile of EPFO's investments, as well as its ability to provide attractive returns to its members," the statement said.
The 235th meeting of the EPF's Central Board of Trustees was held under the Chairmanship of Union Minister for Labour & Employment, Bhupender Yadav.
(With inputs from IANS)
