Interest Rate on EPF: The government has approved an interest rate of 8.25% on the Employees’ Provident Fund (EPF) for the financial year 2024-25. This will benefit more than seven crore shareholders. This rate is the same as last year and the Labor Ministry has directed the EPFO to deposit the interest.
The government has approved an interest rate of 8.25 percent on the Employees Provident Fund (EPF) for the financial year 2024-25. This decision will benefit more than seven crore EPFO shareholders across the country, in whose accounts this interest rate will be credited in the coming months.
This interest rate was decided by the Employees’ Provident Fund Organization (EPFO) in the 237th meeting of the Central Board of Trustees held on 28 February 2024. The meeting was chaired by Union Labor and Employment Minister Mansukh Mandaviya. In this meeting, it was decided that the interest rate for the financial year 2024-25 will be retained at 8.25 percent, which is equal to the rate given in the last financial year 2023-24.
Labor Ministry gave information
To finalize the interest rate, it was sent to the Finance Ministry for approval, which has now received formal approval. The Labor Ministry has informed EPFO in this regard on Thursday, after which EPFO will start the process of depositing interest in the accounts of the subscribers.
Compared to previous years, the interest rate on EPF was 8.15 percent in the financial year 2022-23, while in 2021-22 it was reduced to 8.1 percent, which was the lowest level in more than four decades. Earlier in 2020-21, the interest rate was 8.5 percent.
Why was this decision taken?
Regarding stability in interest rates, experts believe that this decision has been taken keeping in mind the economic stability and financial balance of EPFO. This will maintain the trust of employees in the provident fund and will ensure security after retirement. The consistency in EPF interest rate makes it clear that both the government and EPFO are committed to providing balanced and sustainable returns. This decision is a relief news for millions of employees, especially at a time when the demand for assured and safe returns on investment is high.
