CBT Meeting: 8.15 percent interest is being given on PF in the financial year 2022-23. Earlier in the financial year it was 8.10 percent. In the media report it was being said that it will be reduced but it has been increased by 10 basis points.
Interest Rate FY24: In the upcoming Central Board of Trustees (CBT) meeting of the Employees’ Provident Fund Organization (EPFO), a claim was being made to reduce the interest rate of PF. In the CBT meeting to be held on Saturday, a proposal was expected to reduce the interest rate to 8 percent for the financial year 2023-2024.
But the Central Board of Trustees (CBT) of EPFO headed by Labor and Employment Minister Bhupendra Yadav approved the increased interest rate of EPFO. In the last two financial years, interest of 8.15% in the financial year 2023 and 8.10% in 2022 was given by EPFO.
6.5 crore subscribers will be affected
EPFO is also planning to seek approval from the Board to increase investment in stocks from the current 10% to 15% to improve the returns on investment. At present, the increase in interest rates is sure to have a direct impact on 6.5 crore EPFO subscribers. After considering the proposal to change the interest rate on PF, a notification will be issued by the Finance Ministry.
Pension, budgetary estimates and compliance issues were included in the 235th meeting of CBT. The Finance Ministry has given permission to increase the stock market by 5-15%. But EPFO will have to take approval from the board to increase risk in equity. Let us tell you that in the last 10 years, the highest interest rate on PF was in 2015-16. Which at that time was 8.8 percent annually. If 8 percent is agreed upon today, then this interest rate will be the lowest in the last 10 years.
