Employees Provident Fund Organisation (EPFO) has already started settling claims at the latest interest rate of 8.25 percent per annum, the pension fund body announced on its social media handle.
So far, EPFO has settled over 23.04 lakh claims and disbursed an amount of ₹9,260 crore to the members inclusive of the latest interest rate declared at 8.25 per cent per annum, the pension fund body revealed on ‘X’ platform.
It is worth remembering that EPFO on Feb 10, 2024 fixed an interest of 8.25 percent for 2023-24. The interest rate for the preceding year (2022-23) was 8.15 percent whereas for 2021-22, the rate stood at 8.10 per cent, the lowest since 1977-78 when the rate of interest was 8 percent.
The rate of interest is determined by EPFO’s apex decision making body Central Board of Trustees (CBT).
The interest at the revised rates, since notified, is being paid to the current and outgoing members in their final PF settlements, thus totalling to ₹9,260,40,35,488 for 23,04,516 claims.
How interest rate is determined
In its meeting held on Feb 10, 2024, CBT recommended an interest of 8.25 percent per annum for the fiscal 2023-24. Afterwards, the proposal was sent to the Ministry of Labour & Employment to be sent to the Ministry of Finance.
Eventually, the finance ministry cleared the rate of 8.25 percent on May 6 this year.
Thereafter, the latest rate was notified by the labour ministry vide letter No R/11018/01/2023-SS-II dated May 24, 2024. This was also communicated to the field offices for settlement of claims and crediting of interest in the PF account.
The interest income on debt instruments is estimated at the beginning of the financial year but the income from equity investment is known only after carrying out the equity redemption during the financial year, EPFO further shares on ‘X’ platform.
It is worth mentioning that the members are not at loss on account of declaration of interest rate at the end of the year since the difference in interest rates is paid to them in case the declared rate happens to be higher than that of previous year.
When is the interest for last FY getting credited?
— A Prakash (@nandighosha) July 11, 2024
Interestingly, the post received a number of users expressing their resentment. One subscriber A Prakash wrote, “When is the interest for last FY getting credited?”
Another one wrote, “Many of us still have not received interest.” One Shitikantha Mohanty wrote, “I have not received it.”
