EPFO Retains 8.25% Interest On Deposits

New Delhi: Retirement fund body EPFO on Friday retained an interest rate of 8.25 per cent on employees’ provident fund (EPF) deposits for 2024-25, sources said.

In February 2024, the Employees’ Provident Fund Organisation (EPFO) had increased the interest rate on EPF marginally to 8.25 per cent for 2023-24, from 8.15 per cent in 2022-23.

In March 2022, EPFO had lowered the interest on EPF for 2021-22 to an over four-decade low of 8.1 per cent for its over seven crore subscribers, from 8.5 per cent in 2020-21. The 8.10 per cent rate of interest on EPF for 2020-21 was the lowest since 1977-78, when the EPF interest rate stood at 8 per cent.

“The EPFO’s apex decision making body Central Board of Trustees (CBT) has decided to provide 8.25 per cent rate of interest on EPF for 2024-25 at its meeting on Friday,” a source said.

The 8.5 per cent interest rate on EPF deposits for 2020-21 was decided by CBT in March 2021.

After the CBT’s decision, the interest rate on EPF deposits for 2024-25 will be sent to the Ministry of Finance for concurrence. After the government’s ratification, the interest rate on EPF for 2024-25 will be credited into accounts of over seven crore subscribers of EPFO.