Bombay High Court EPFO ​​Decision: There is an important update for crores of subscribers connected to the Employees’ Provident Fund (EPF). Recently, it was claimed in social media and some reports that the Central Government can increase the interest on EPF by 10%. However, the government has now clarified that there is no such proposal at present.

Dependent on the fund’s annual earnings

The government, in a written reply in Parliament, said that EPF interest rates are decided by the Central Board of Trustees of the Employees’ Provident Fund Organization (EPFO). This rate depends on the annual earnings of the fund. The current interest rates are still safe and competitive compared to other savings schemes in the market.

Highest in last three years

The interest rate on EPF was fixed at 8.25% in the financial year 2023-24, which is the highest in the last three years. The interest rates in the previous years have been – 8.15% in 2022-23, 8.10% in 2021-22, and 8.50% in 2020-21.

balance between income and liabilities

The demand to increase the interest rate to 10% had arisen due to rising inflation and expectations of better returns. Many employee organizations wanted the EPF to give more benefits to investors, but the government said it was necessary to maintain a balance between the income and liabilities of the fund.