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3mo ago

EPFO Retains Provident Fund Interest Rate at 8.25% for 2024-25

The decision affects over 70 million Indian salaried workers and reflects caution in the face of global financial uncertainties.

EPFO has reportedly set an interest rate of 8.25% on EPF deposits for 2024-25, PTI reported.
The decision not to lower interest rates is a welcome move for the EPFO’s subscribers, for whom provident fund is often the only means to save up for retirement. Yet, the existing interest rate is significantly lower than in 2015-16, when it was be 8.8% (HT Photo)
EPFO

Overview

  • The Employees' Provident Fund Organisation (EPFO) has kept the interest rate on provident fund deposits unchanged at 8.25% for the financial year 2024-25.
  • This decision follows a marginal increase from 8.15% in 2022-23 to 8.25% in 2023-24, maintaining stability for subscribers' retirement savings.
  • The EPFO's Central Board of Trustees, chaired by Union Labour Minister Mansukh Mandaviya, cited global economic uncertainties and geopolitical risks as key factors for retaining the rate.
  • The interest rate, which once stood at 8.8% in 2015-16, has been gradually reduced in recent years due to pressured earnings and changing market conditions.
  • The proposal will now be sent to the Ministry of Finance for approval before the interest earnings are credited to the accounts of over seven crore EPF subscribers.