EPFO Retains 8.25% Interest Rate for 2024-25

The Employees' Provident Fund Organisation (EPFO) has decided to retain an interest rate of 8.25% on EPF deposits for the financial year 2024-25. This rate was slightly increased from the previous year's 8.15%. The decision now awaits the Finance Ministry's approval before crediting to subscribers' accounts.

The Employees' Provident Fund Organisation (EPFO) announced on Friday that it will retain an 8.25% interest rate on employee provident fund (EPF) deposits for the 2024-25 fiscal year. This decision echoes the previous interest rate set for 2023-24 and is slightly higher than the 8.15% offered in 2022-23.

In a significant year-on-year move, EPFO had earlier dropped the EPF interest rate to 8.1% for the 2021-22 period, marking the lowest in over four decades. Prior to this, interest rates fluctuated, with a notable drop to an eight-year low of 8.5% in 2019-20, down from 8.65% the year prior.

The new rate, awaiting approval from the Ministry of Finance, highlights EPFO's mechanism of aligning yield with broader economic indicators. Once ratified, the interest will be credited to the accounts of over seven crore EPFO subscribers.

(With inputs from agencies.)