The Central Board of Trustees (CBT) of EPFO has recommended an increased EPF interest rate of 8.25% for financial year 2023-24, marginally higher than 8.15% for 2022-23.
The decision was taken at the 235th CBT meeting on February 10, 2024 chaired by Labour Minister Bhupendra Yadav. The proposed rate is subject to Ministry approval before being credited to EPFO subscriber accounts. The recommendation reflects EPFO’s ability to deliver higher returns to members through prudent investments.
Key Points from CBDT EPFO Meetings (FY 2023-24)
Here are the key points:
i) EPFO has recommended the PF interest rate of 8.25% for financial year 2023-24.
ii) This rate is slightly higher than the 8.15% announced for previous financial year 2022-23.
iii) The recommendation was made at the 235th CBT meeting held on 10th February 2024 chaired by Labour Minister Bhupendra Yadav.
iv) The proposed 8.25% PF interest rate for 2023-24 is subject to review and approval by the Ministry of Labour and Employment.
v) After approval, the PF interest @ 8.25% will be credited to EPFO subscribers’ accounts for FY 2023-24.
vi) EPFO has a history of providing higher returns to members compared to other investment options.
vii) The recommended interest rate reflects EPFO’s ability to generate attractive returns through prudent investment of its funds.
In summary, the CBT has proposed an increased PF interest rate of 8.25% for 2023-24, which will be officially notified post approval by the Ministry of Finance. The rate is higher than last year and indicates EPFO’s strong investment returns. (PIB 2004768)
EPFO Recommends 8.15% PF Interest Rate for FY 2022-23
The Central Board of Trustees (CBT) of EPFO has earlier recommended PF interest rate of 8.15% for the financial year (FY) 2022-23 to be credited on EPF accumulations in members’ accounts, slightly higher than the 8.10% announced for FY 2021-22.
The decision was made at the 233rd meeting of the CBT held in Delhi, chaired by Shri Bhupendra Yadav, Union Minister for Labour & Employment and Environment, Forest & Climate Change.
The recommended PF interest rate for FY 2022-23 is subject to review and approval by the Ministry of Labour and Employment, Government of India. After approval, the interest will be credited to the respective subscribers’ accounts.
EPFO Circular 2766 dated 24/07/2023: EPFO notifies GOI Approved Increased EPF Interest Rate at 8.15% for FY 2022-23
EPFO Circular 4670 dated 03/06/2022: EPFO notifies GOI Approved Reduced EPF Interest Rate at 8.1% for FY 2021-22
Para 60 of EPF Scheme 1952: Interest Provisions
According to the provisions of Para 60 of the EPF Scheme, PF Interest is required to be credited each year in the account of each member/ subscriber, based on rate approved by the Central Government in consultation with the Central Board of Trustees of EPFO. However, it may be noted that PF Interest is credited to each members account annually but the same is calculated based on monthly running balances.
PF Interest Rates from 1952
| YEAR | PF INTEREST RATE |
| 1952-53 to 1954-55 | 3.00% |
| 1955-56 to 1956-57 | 3.50% |
| 1957-58 to 1962-63 | 3.75% |
| 1963-64 | 4.00% |
| 1964-65 | 4.25% |
| 1965-66 | 4.50% |
| 1966-67 | 4.75% |
| 1967-68 | 5.00% |
| 1968-69 | 5.25% |
| 1969-70 | 5.50% |
| 1970-71 | 5.70% |
| 1971-72 | 5.80% |
| 1972-73 to 1973-74 | 6.00% |
| 1974-75 | 6.50% |
| 1975-76 | 7.00% |
| 1976-77 | 7.50% |
| 1977-78 | 8.00% |
| 1978-79 | 8.25% or 8.75% [Note 1] |
| 1979-80 to 1980-81 | 8.25% |
| 1981-82 | 8.50% |
| 1982-83 | 8.75% |
| 1983-84 | 9.15% |
| 1984-85 | 9.90% |
| 1985-86 | 10.15% |
| 1986-87 | 11.00% |
| 1987-88 | 11.50% |
| 1988-89 | 11.80% |
| 1989-90 to 1999-2K | 12.00% |
| 2000-01 | 12% & 11% [Note 2] |
| 2001-02 to 2003-04 | 9.50% |
| 2004-05 | 9.5% [Note 3] |
| 2005-06 to 2009-10 | 8.50% |
| 2010-11 | 9.50% |
| 2011-12 | 8.25% |
| 2012-13 | 8.50% |
| 2013-14 to 2014-15 | 8.75% |
| 2015-16 | 8.80% |
| 2016-17 | 8.65% |
| 2017-18 | 8.55% |
| 2018-19 | 8.65% |
| 2019-20 to 2020-21 | 8.50% |
| 2021-22 | 8.10% |
| 2022-23 | 8.15% |
Notes:
1. Interest @ 8.25% plus Bonus @ 0.5% for members who did not withdraw any PF amount during 1976-77 & 1977-78
2. 12% during April- June, 2001 and 11% from July, 2001 and onwards.
3. 9% Interest plus 0.5% Golden Jubilee bonus.