Provident Fund interest rate: EPFO likely to propose 8% rate for FY24

Feb 9, 2024

epfo Rate of interest FY24: The central board of trustees (CBT) of employees Provident Fund According to sources familiar with the matter, the organization (EPFO) is expected to propose an interest rate of around 8% for the financial year 2023-2024. In the last years, epfo 8.15% interest was deposited in FY23 and 8.10% interest in FY22. CBT meeting will be held on Saturday.
EPFO is also planning to seek approval from the board to increase its investment in shares from the current 10% to 15% to improve returns on investment. Being an election year, the government aims to provide a sustainable rate of return on provident fund (PF) deposits, keeping it in line with existing rates, to avoid any backlash, an EPFO ​​board member told ET.

provident fund interest rates over the years

provident fund interest rates over the years

The above are the interest rates on provident fund deposits for the last 10 years.
The state-run retirement fund body has more than 60 million subscribers. The final rate of interest for the Provident Fund will be notified by the Finance Ministry after considering the recommended rate. EPFO has shared the agenda of the 235th CBT meeting to be held on February 10, including updates on pension, budgetary estimates and compliance issues.
Though it was not initially a part of the circulated agenda, the EPFO ​​Chairman is likely to initiate discussion on interest rates and equity investments during the CBT meeting with the permission of the Labor Minister.
The Finance Ministry allows 5-15% incremental investment in stocks, but EPFO ​​will have to seek board approval to increase its exposure to equities.

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