By Admin 
Bombay High Court EPFO Decision: There is an important news for crores of subscribers of Employees Provident Fund i.e. EPF. For the last few days, it was claimed in social media and many reports that the Central Government can increase the interest on EPF to 10%. Now the government itself has officially clarified its position on these speculations. Know what the government has said.
In fact, during the recent session of Parliament, the Ministry of Labor and Employment was asked whether any proposal to increase the interest rates of Provident Fund to 10% is under consideration? On this, the government replied in writing to the Parliament and said that at present there is no proposal to increase the EPF interest rate by 10 percent.
The government clarified that the interest rates of EPF are decided by the Central Board of Trustees of the Employees’ Provident Fund Organization (EPFO), which depends on the annual earnings of the fund. The government also clarified that the current rates are still quite competitive and safe compared to other savings schemes in the market.
What is the current interest rate?
For the financial year 2023-24, the government had fixed the interest rate on EPF at 8.25%. This is one of the highest rates in the last three years.
How were the interest rates in the last years?
- FY 2023-24- 8.25%
- FY 2022-23- 8.15%
- FY 2021-22- 8.10%
- FY 2020-21- 8.50%
Why was the demand for 10% raised?
In view of rising inflation and expectations of better returns compared to other investment options, many employee unions and organizations had demanded that the interest rate be taken to double digits. However, the government believes that EPFO has to maintain a balance between its liabilities and investment income.
Also read: Stock Market Crash: This is what the stock market looked like… investors lost Rs 10 lakh crore in a short time, know the details