EPFO retains 8.25% interest rate on provident fund deposits for 2024-25
New Delhi: The Employees' Provident Fund Organisation (EPFO) has decided to maintain the interest rate on employees' provident fund (EPF) deposits at 8.25% for the 2024-25 financial year, sources said on Friday.
This follows a marginal increase in February 2024, when EPFO raised the interest rate to 8.25% for 2023-24, up from 8.15% in 2022-23.
The organisation had previously reduced the rate to a four-decade low of 8.1% for 2021-22, down from 8.5% in 2020-21.
The last time the EPF interest rate was this low was in 1977-78, when it stood at 8%.
"The EPFO's apex decision-making body, the Central Board of Trustees (CBT), has decided to provide an 8.25% interest rate on EPF for 2024-25 at its meeting on Friday," a source said.
Following the CBT's decision, the proposed rate will be sent to the Ministry of Finance for approval.
Once ratified by the government, the interest will be credited to the accounts of over seven crore EPFO subscribers.
EPFO determines the interest rate only after securing approval from the finance ministry.
In March 2020, the retirement fund body had lowered the interest rate to 8.5% for 2019-20, down from 8.65% in 2018-19.
In previous years, EPFO offered 8.65% in 2016-17, 8.55% in 2017-18, and a slightly higher 8.8% in 2015-16.
The organisation had provided 8.75% interest for both 2013-14 and 2014-15, which was higher than the 8.5% rate for 2012-13. The interest rate stood at 8.25% in 2011-12.
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