No Change! EPFO Retains 8.25% Interest Rate on Provident Fund Deposits for 2024-25

The Employees' Provident Fund Organisation (EPFO) has decided to retain the interest rate on Employees’ Provident Fund (EPF) deposits at 8.25% for the financial year 2024-25, according to sources. This decision was taken at a meeting of EPFO's apex decision-making body, the Central Board of Trustees (CBT), on Friday.

Recent Trends in EPF Interest Rates

In February 2024, EPFO had marginally increased the interest rate to 8.25% for 2023-24, up from 8.15% in 2022-23. The lowest EPF interest rate in over four decades was recorded in 2021-22 at 8.1%, following a reduction from 8.5% in 2020-21.

Over the years, EPF interest rates have seen fluctuations:

2020-21: 8.5%

2019-20: 8.5% (down from 8.65% in 2018-19)

2015-16: 8.8% (one of the highest rates in recent years)

2011-12: 8.25%

Government Approval Required Before Implementation

Following the CBT’s decision, the proposed interest rate will be sent to the Ministry of Finance for final approval. The EPF interest rate is credited to over seven crore subscribers’ accounts only after government ratification.

EPFO's Role in Retirement Savings

EPFO plays a crucial role in managing the retirement savings of salaried employees across India. By maintaining a steady interest rate of 8.25%, EPFO aims to balance financial stability while ensuring competitive returns for its subscribers.

With this latest decision, employees can expect their provident fund savings to grow at the same rate as the previous fiscal year, offering security and long-term financial planning benefits.