Provident Fund Latest News: EPFO Hikes Interest Rate to 8.25% for FY 23-24
If you are a salaried employee in India, you must be familiar with the Employees’ Provident Fund (EPF), a mandatory savings scheme that deducts a portion of your monthly income and deposits it in a fund managed by the Employees’ Provident Fund Organisation (EPFO). The EPF is not only a source of retirement savings, but also a way to earn interest on your money.
But do you know how much interest you are earning on your EPF account? And do you know that the EPFO has recently announced a hike in the interest rate for the fiscal year 2023-24? In this blog post, we will tell you everything you need to know about the provident fund latest update, and how it will affect your savings.
What is the EPF Interest Rate for FY 23-24?
The EPF interest rate is like the extra money you get every year for saving your pocket money. It’s decided by a group called the Central Board of Trustees (CBT), made up of people from the government, your parents’ work, and workers like teachers. They need the Ministry of Finance to say okay, and they usually decide by the end of the money year.
For the fiscal year 2023-24, the CBT has proposed an interest rate of 8.25% on EPF deposits, which is the highest in three years. The previous interest rate was 8.15% for 2022-23, 8.1% for 2021-22, and 8.5% for 2020-21. The proposed interest rate will be formally announced in the government gazette after the approval of the Ministry of Finance. The EPFO will then credit the interest to the EPF accounts of over six crore subscribers.
Why is the EPF Interest Rate Hiked?
The EPF interest rate hike stems from better performance in EPFO investments. As per the Press Information Bureau (PIB) release on February 10, 2024, EPFO suggests distributing a historic income amounting to Rs. 1,07,000 crores to EPF members’ accounts. This is on a total principal amount of about Rs. 13 lakh crores, compared to Rs. 91,151.66 crores and Rs. 11.02 lakh crores in the financial year 2022-23, respectively. The total income recommended for distribution is the highest ever.
The EPFO puts some of its money, about 15%, into something called exchange-traded funds (ETFs) that follow the Nifty 50 and Sensex indices. The rest goes into things like government bonds, company bonds, and other safe ways to make money. In the year 2023-24, they made 14.5% on the money they put in stocks and 8.5% on the money they put in bonds.
The EPF interest rate hike is also a welcome relief for the salaried employees, who have been facing the impact of inflation, rising fuel prices, and the COVID-19 pandemic. The higher interest rate will boost their savings and help them meet their financial goals.
How to Check Your EPF Balance and Interest?
Checking your EPF balance and interest is easy and convenient, thanks to the various online and offline methods available. You can use any of the following methods to check your EPF balance and interest:
- Umang app: Get the Umang app on your phone, sign up with your mobile number, and you’re good to go. You can see your EPF passbook, apply for claims, and keep tabs on your claims’ status.
- EPFO website: Go to the EPFO website’s employee section. Click on “Member Passbook,” enter your UAN and password, and voila! You can view your EPF balance, contributions, transfers, and earned interest.
- Missed call: Just give a missed call from your registered number to 011-22901406. You’ll receive your EPF balance and interest details via SMS. Make sure your bank account, Aadhaar, and PAN are linked to your UAN.
- SMS service: Send an SMS to 7738299899 from your registered number. Type EPFOHO UAN <LAN> (replace <LAN> with your language preference). For example, for English, type EPFOHO UAN ENG. You’ll get your balance and interest details via SMS. No charges apply.
Conclusion
The EPF interest rate hike for 2023-24 is a positive development for salaried employees. They can expect higher interest on their retirement savings, making EPF one of India’s highest-yielding, tax-free savings schemes. It’s a secure way to save for the future, so regularly check your balance and interest. Keep your personal and KYC details updated on the EPFO portal.
We hope you found this blog post informative and useful. If you have any questions or feedback, please feel free to leave a comment below. And if you are looking for more such content on finance and see the Top 10 Investing Tips, Thank you for reading!
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