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Synopsis : With the General Elections concluded, Employees' Provident Fund (EPF) subscribers can soon expect the credit of an 8.25% interest rate on their savings for the fiscal year 2023-24. Although the Central Board of Trustees approved this rate in February, the formal notification from the finance ministry is still pending, likely delayed by the election-related model code of conduct. The finance ministry is expected to issue the notification by early July, following which the EPFO will credit the interest into subscribers' accounts.
Following the conclusion of the General Elections, subscribers to the Employees' Provident Fund (EPF) can look forward to the credit of interest on their retirement savings for the fiscal year 2023-24. The Central Board of Trustees (CBT) of the Employees' Provident Fund Organisation (EPFO) had approved an interest rate of 8.25% in February 2024, marking a three-year high. However, the formal notification from the finance ministry is still awaited.
The delay in the notification has been attributed to the model code of conduct in place during the election period. According to sources, this notification is expected to be taken up in the coming weeks and could be issued by early July.
Last year, the finance ministry notified the interest rate for FY23 in mid-July. Typically, once the finance ministry approves and notifies the recommended interest rate, the EPFO begins crediting the interest into the accounts of its subscribers. This process generally occurs in the first quarter of the fiscal year.
In response to a user query on X (formerly Twitter) in April, the EPFO stated that the process of crediting interest was in the pipeline and would be completed shortly, assuring subscribers that there would be no loss of interest regardless of the delay. Despite this assurance, the EPFO has not provided further updates, leading to concerns among subscribers regarding the delay.
Subscribers had welcomed the announcement of the higher interest rate for FY24, which followed an interest rate of 8.15% for FY23 and 8.1% for FY22. The EPFO had previously credited interest for FY23 into 28.17 crore member accounts by mid-March.
The upcoming notification from the finance ministry will enable the EPFO to credit the 8.25% interest into subscribers' accounts, continuing its tradition of providing competitive returns on retirement savings.
Related Questions
1. What interest rate did the Central Board of Trustees (CBT) of the EPFO approve for fiscal year 2023-24?
The Central Board of Trustees (CBT) of the EPFO approved an interest rate of 8.25% for fiscal year 2023-24.
2. Why has the formal notification from the finance ministry for the EPF interest rate been delayed?
The delay is attributed to the model code of conduct in place during the election period.
3. When is the expected timeline for the finance ministry to issue the formal notification regarding EPF interest?
The notification is expected to be issued by early July.
4. What assurance has the EPFO provided to subscribers regarding the delay in crediting interest?
The EPFO assured subscribers that there would be no loss of interest regardless of the delay.
5. What interest rate did the EPFO credit into member accounts for fiscal year 2022-23?
The EPFO credited an interest rate of 8.15% into member accounts for fiscal year 2022-23.
