EPFO interest rate FY 2024-25: The EPFO has maintained an interest rate of 8.25 per cent on EPF (Employees’ Provident Fund) deposits for 2024-25. Previously, in February 2024, the organisation had slightly increased the rate to 8.25 per cent for 2023-24, up from 8.15 per cent in 2022-23.
The interest rate saw a significant reduction in March 2022, when it was lowered to 8.1 per cent for 2021-22, marking the lowest rate in over four decades for its more than seven crore subscribers, compared to 8.5 per cent in 2020-21. This 8.10 per cent rate was the lowest since 1977-78, when it stood at 8 per cent.
A source told PTI that the Central Board of Trustees (CBT), EPFO's highest decision-making body, confirmed the 8.25 per cent interest rate for 2024-25 during Friday's meeting. The CBT had previously set the 8.5 per cent rate for 2020-21 in March 2021.
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Universal Pension Scheme in works: Voluntary and contributory scheme being planned by Modi governmentThe newly decided rate for 2024-25 requires approval from the Ministry of Finance. Following governmental ratification, the interest will be credited to the accounts of EPFO's over seven crore subscribers. The organisation can only implement the interest rate after receiving the finance ministry's approval.
In March 2020, the rate was reduced to 8.5 per cent for 2019-20, down from 8.65 per cent in 2018-19. The organisation had offered 8.65 per cent in 2016-17 and 8.55 per cent in 2017-18.
The interest rates in previous years were marginally higher, with 8.8 per cent in 2015-16 and 8.75 per cent in both 2013-14 and 2014-15, exceeding the 8.5 per cent rate of 2012-13. For 2011-12, the interest rate stood at 8.25 per cent.
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