The Employees’ Provident Fund Organisation, or EPFO, on Saturday recommended an interest rate increase to 8.25% from 8.15% for 2023-‘24, reported PTI.
The EPFO, which falls under the purview of the Ministry of Labour and Employment, manages the country’s largest retirement fund with nearly six crore active subscribers.
Provident fund accounts are mandatory for workers earning up to Rs 15,000 a month in companies with more than 20 employees. At least 12% of an employee’s basic salary is compulsorily deducted to be deposited in the provident fund. The employer contributes a matching amount.
The recommendation to hike the interest rate for the employees’ provident fund interest was taken in the Central Board of Trustees meeting held on Saturday, reported The Indian Express.
It will now be sent to the Ministry of Finance for concurrence. After the government’s ratification, the interest rate on the fund for 2023-‘24 will be credited.
If ratified, this will be the…