The interest rate on funds from your employee provident fund will increase from the current 8.15 percent to 8.25 percent in 2023–2024. The EPF interest rates in 2021–2022 and 2022–2023 were 8.1% and 8.15%, respectively. This indicates that the interest rate in 2023–2024 is the highest in the last three years.
Every year, the interest rate offered by EPF is reviewed. The retirement fund body's earnings from its deposits are used to set the interest rates. The program's goal is to give workers in businesses that follow the EPF Act retirement benefits.
Composition of the EPF
According to Value Research's Chirag Madia, “The Employees' Provident Fund Organisation (EPFO) makes investments in a variety of markets, including exchange-traded funds (ETFs), state and federal government securities, and state development loans. Additionally, EPFO uses exchange-traded funds (ETFs) to invest 15% of its funds in stock markets, mirroring the BSE Sensex and Nifty 50 indices. Additionally, EPFO has invested in the Bharat 22 ETF and the CPSE ETF. As of March 2023, the EPFO's annual report stated that the entire corpus of all the funds it administered was Rs 21.36 lakh crore.”
Furthermore, tThe Union Finance Minister has received a recommendation from the Employees Provident Fund Organization's Central Board of Trustees (CBT) that the increased interest rate of 8.25% be applied to the accumulations in subscribers' accounts for the years 2023–2024. Official notification of the new rate will appear in the government gazette as soon as the Finance Ministry approves the approval. In a news statement, the Union Labour Ministry stated, "The EPFO will then credit the approved rate of interest to its subscribers' accounts."
PF's 8.25% rate is greater than that of small savings plans. In comparison to minor savings plans like PPF, Sukanya Samriddhi Yojana, and post office deposits that give up to 8.2 percent yearly, the current interest rate of 8.25 percent is greater.
Every quarter, the interest rates on modest savings programmes, such as Kisan Vikas Patra (KVP), National Savings Certificate (NSC), and Public Provident Fund (PPF), are revised. This is a list of small savings plans along with the interest rates for the quarter ending in January through March of 2024.
4% for savings deposits
6.9% of one-year post office time deposits
Post Office Time Deposits for Two Years: 7.0%
Post Office Time Deposits for Three Years: 7.1% (formerly 7.0%)
Post Office Time Deposits for Five Years: 7.5%
7.7% of National Savings Certificates (NSCs)
7.5% of Kisan Vikas Patra
7.1% is the Public Provident Fund
