PF rate of interest set at 8.25% for FY24, the very best in three years; payout to prime ₹1 lakh cr

For 2022-23, the retirement fund physique provided 8.15% curiosity, larger than 8.10% in 2021-22.

The rate of interest for 2023-24 will probably be formally notified after approval from the finance ministry, following which EPFO will credit score the curiosity to subscribers’ accounts on the finish of the monetary 12 months.

“The transfer is a step in direction of fulfilling PM Narendra Modi‘s assure of strengthening social safety for India’s workforce,” mentioned labour and employment minister Bhupender Yadav in a submit on social media platform X. The labour minister is the chairman of the central board of trustees of EPFO.

The rise in rate of interest by the EPFO comes on the again of robust monetary returns earned by the retirement fund physique this 12 months, together with on its investments in fairness, and virtually negligible Covid-19 withdrawals, officers mentioned. EPFO’s earnings in 2023-24 stand at ₹13 lakh crore, up 17.97% from ₹11.02 lakh crore in 2022-23, the labour and employment ministry mentioned in an announcement.

Complete payout of curiosity for this fiscal is pegged at ₹1,07,000 crore, 17.39% larger than ₹91,151.66 crore in 2022-23, it mentioned.”The entire earnings really helpful for distribution has crossed ₹1 lakh crore for the primary time. This means a wholesome monetary efficiency and doubtlessly robust return for its members,” the ministry mentioned.The payout of elevated rate of interest is predicted to go away the retirement fund physique with a surplus of ₹278 crore, a lot decrease than ₹663.91 crore in 2022-23. The 8.25% price, as soon as notified, will probably be relevant to voluntary provident fund deposits as nicely. Exempted trusts are additionally certain to credit score the curiosity on the identical price as EPFO to staff.

Pension-related Grievances
In addition to, EPFO’s central board of trustees, at its 235th board assembly held on Saturday, determined to handle pension-related grievances at its subsequent Nidhi Aapke Nikat outreach programme, scheduled for February 27. Workers’ provident fund is a compulsory contribution for salaried staff in organisations with 20 or extra employees.

Below the Workers’ Provident Fund & Miscellaneous Provisions Act, staff contribute 12% of their wages to the EPF account on a month-to-month foundation, with an identical contribution by the employer.

Whereas the staff’ full contribution is deposited to the EPF account, solely 3.67% of the employer share is deposited to the EPF account and the steadiness 8.33% goes in direction of the Workers’ Pension Scheme.

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