Provident Fund interest rate: EPFO likely to propose 8% rate for FY24 – Times of India

by The Technical Blogs

EPFO interest rate FY24: The Central Board of Trustees (CBT) of the Employees’ Provident Fund Organisation (EPFO) is expected to propose an interest rate of around 8% for the financial year 2023-2024, according to sources familiar with the matter. In the previous years, the EPFO had credited 8.15% interest in FY23 and 8.10% in FY22. The CBT will meet on Saturday.
The EPFO is also planning to seek approval from the board to increase its investment in stocks from the current 10% to 15% in order to improve the return on investments. An EPFO board member told ET that the government, being an election year, aims to provide a sustainable rate of return on provident fund (PF) deposits, keeping it in line with the existing rates to avoid any backlash.

Provident Fund interest rates over years

Above is the interest rates on Provident Fund deposits for the last 10 years.
The state-run retirement fund body has over 60 million subscribers. The final rate of interest for the provident fund will be notified by the Ministry of Finance after considering the recommended rate. The EPFO has shared the agenda for the 235th CBT meeting scheduled for February 10, which includes updates on pensions, budgetary estimates, and compliance issues.
Although not initially part of the circulated agenda, the EPFO is likely to introduce discussions on interest rates and equity investments during the CBT meeting with permission from the chairman, the labour minister.
The finance ministry allows for 5-15% of incremental investments in stocks, but the EPFO must receive approval from the board to increase its exposure to equities.

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