EPFO Retains EPF Interest Rate at 8.25% for 2024-25

New Delhi, February 28: The Employees' Provident Fund Organisation (EPFO) has decided to maintain the interest rate on Employees' Provident Fund (EPF) deposits at 8.25% for the financial year 2024-25. Sources revealed this decision on Friday following the meeting of EPFO’s apex decision-making body, the Central Board of Trustees (CBT).

The EPFO had previously increased the EPF interest rate from 8.15% in 2022-23 to 8.25% for 2023-24 in February 2024. This minor hike came after the organisation had set the interest rate at a four-decade low of 8.1% for 2021-22, down from 8.5% in 2020-21. The 8.1% rate was the lowest since 1977-78 when the EPF interest rate was 8%.

A source stated, "The Central Board of Trustees (CBT) of EPFO decided in its meeting on Friday to keep the EPF interest rate at 8.25% for the fiscal year 2024-25."

Following the CBT’s decision, the proposed interest rate for 2024-25 will be sent to the Finance Ministry for approval. Once approved by the government, the interest will be credited to the accounts of over seven crore EPFO subscribers.

EPFO provides the interest rate on EPF deposits only after receiving the government's nod through the Finance Ministry. The last major interest rate decision was made in March 2021, when the CBT recommended an 8.5% interest rate for 2020-21.

The announcement brings stability to EPF holders, offering a consistent return on their retirement savings amid fluctuating market conditions.