Retirement fund body EPFO on Friday retained an interest rate of 8.25% on employees' provident fund deposits for 2024-25, PTI reported citing sources. In February 2024, the Employees' Provident Fund Organisation had increased the interest rate on EPF marginally to 8.25% for 2023-24, from 8.15% in 2022-23.
In March 2022, the EPFO had lowered the interest on EPF for 2021-22 to an over four-decade low of 8.1% for its over seven crore subscribers, from 8.5% in 2020-21. The 8.10% rate of interest on EPF for 2020-21 was the lowest since 1977-78, when the EPF interest rate stood at 8%.
The EPFO's apex decision making body, the Central Board of Trustees, has decided to provide 8.25% rate of interest on EPF for 2024-25 at its meeting on Friday, PTI reported. The 8.5% 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 the accounts of over seven crore subscribers of EPFO.
EPFO provides the rate of interest only after it is ratified by the government through the finance ministry. In March 2020, EPFO had lowered the interest rate on provident fund deposits to a seven-year low of 8.5% for 2019-20, from 8.65% provided for 2018-19.
In the past, EPFO had provided 8.65% interest rate to its subscribers in 2016-17 and 8.55% in 2017-18. The rate of interest was higher at 8.8% during 2015-16. The retirement fund body had given 8.75% in 2013-14 as well as 2014-15, which was higher than 8.5% for 2012-13. The rate of interest was fixed at 8.25% in 2011-12.
(With inputs from PTI).
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
