The Employees’ Provident Fund Organisation (EPFO) has announced that it will offer an interest rate of 8.25% on provident fund deposits for the financial year 2023-24. This is the highest rate in the last three years and a significant increase from the previous year’s rate of 7.5%. The decision was taken by the EPFO’s Central Board of Trustees (CBT) in its meeting on February 17, 2024.
EPFO Increases Interest Rate to 8.25% for 2023-24
The EPFO’s decision to hike the interest rate to 8.25% is seen as a welcome move by the employees, as it will boost their savings and provide them with higher returns. The EPFO said that the higher rate was possible due to its prudent investment policies and efficient fund management. The EPFO invests its corpus in various instruments such as government securities, corporate bonds, equities, and exchange-traded funds (ETFs). The EPFO claimed that it earned a surplus of Rs. 1,000 crore in the financial year 2023-24, which enabled it to offer a higher rate.
The EPFO’s interest rate is higher than most other savings schemes in India, such as the Public Provident Fund (PPF), which offers 7.1%, and the National Savings Certificate (NSC), which offers 6.8%. The EPFO’s rate is also higher than the average inflation rate, which was 6.2% in January 2024. This means that the EPF deposits will not lose their value over time, and will help the employees to maintain their purchasing power and standard of living.
How to Check EPF Balance?
The EPFO provides various ways for the employees to check their EPF balance and track their transactions. The employees can use any of the following methods to access their EPF account details:
On UMANG App
The UMANG app is a unified mobile application that offers various government services on a single platform. The employees can download the app from the Google Play Store or the Apple App Store, and register using their mobile number and Aadhaar number. The employees can then select the EPFO option and log in using their Universal Account Number (UAN) and password. The employees can then view their EPF balance, passbook, claim status, and other details on the app.
Using EPFO Portal
The EPFO portal is the official website of the EPFO, where employees can access various online services. The employees can visit the portal at https://www.epfindia.gov.in/, and click on the ‘For Employees’ section. The employees can then click on the ‘Member Passbook’ option and log in using their UAN and password. The employees can then view and download their EPF passbook, which shows their monthly contributions and interest earned.
Through SMS or Missed Call
To check your EPF balance, you can send an SMS to 7738299899 from your registered mobile number:
- Text “EPFOHO UAN ENG”
- You will receive information about your PF contribution and current EPF balance
You can also check your EPF balance by giving a missed call to 9966044425
On the EPFO Mobile App
The EPFO mobile app is another option for employees to access their EPF account details. The employees can download the app from the Google Play Store, and register using their UAN and mobile number. The employees can then view their EPF balance, passbook, claim status, and other details on the app.
Benefits of EPF for Employees
The EPF scheme offers several benefits for the employees, such as:
- Mandated contribution: The EPF scheme requires the employees to contribute 12% of their basic salary and dearness allowance every month to the fund. This ensures that the employees save a portion of their income regularly, and build a corpus for their future needs.
- Matching employer contribution: The EPF scheme also requires the employer to contribute an equal amount to the fund on behalf of the employee. Out of this, 8.33% goes to the Employees’ Pension Scheme (EPS), which provides a monthly pension to the employee after retirement, and the remaining 3.67% goes to the EPF account. This means that the employee gets a double benefit of saving and earning interest on their own contribution, as well as receiving a matching contribution from the employer.
- Easy access to funds: The EPF scheme allows employees to withdraw their funds partially or fully in case of certain situations, such as buying a house, paying for education or medical expenses, marriage, or unemployment. The employees can also transfer their EPF account from one employer to another, without losing their balance or interest. The employees can also nominate their family members to receive their EPF balance in case of their death.
