EPFO started settling claims at 8.25% per annum

EPFO started settling claims at 8.25% per annum

EPFO has already started settling claims at 8.25% per annum. Rate of interest is calculated on the basis of income from debt and equity investment of EPFO. 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.

The Central Board of Trustees (CBT) recommends the rate of interest during the last quarter of the Financial Year for decision by the Central Government.

It is mentioned that the members are not at loss on account of declaration of rate of interest after the end of financial year as difference in rate of interest is paid to them, if the declared rate is higher than previous year. All continuing EPF members will also receive credit of interest declared on compilation of annual statement of accounts.

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CBT in its meeting held on 10.02.2024, recommended interest rate at 8.25% per annum for the financial year 2023-24 and the proposal was sent to Ministry of Labour & Employment for forwarding to Ministry of Finance.

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Ministry of Finance approved the annual interest rate 8.25% on 06.05.2024. Thereafter, Ministry of Labour notified the same vide letter No R/11018/01/2023-SS-II dated 24.05.2024 which was communicated to the field offices for settlement of claims and crediting of interest in the members PF account.

The interest at the revised rates, since notified, is being paid to the current and outgoing members in their final PF settlements. Accordingly, 23,04,516 claims have been settled disbursing an amount of Rs. 9260,40,35,488 to the members inclusive of latest interest rate declared @ 8.25% per annum.

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