The Employees' Provident Fund Organisation (EPFO) board on Friday retained fixed 8.25 per cent interest rates on employees' provident fund deposits for 2024-25, PTI reported. The Employees' Provident Fund Organisation (EPFO), which manages the EPF accounts of over seven crore subscribers, had increased the EPF interest rate from 8.15% in 2022-23 to 8.25% in 2023-24.The organisation lowered the interest rate to 8.1% for 2021-22 in March 2022. This was the lowest since 1977-78, when the rate stood at 8%. The interest rate for 2020-21 was 8.5%.
“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 told PTI. After CBT's decision to keep the interest rate unchanged, the proposal will be sent to the Union Ministry of Finance for concurrence. The interest amount will be credited to employees' provident fund accounts only after the government's approval.
The interest rate had been at 8.65% for 2018-19, 8.55% in 2017-18, and 8.65% in 2016-17. The rate of interest was slightly higher at 8.8 per cent in 2015-16. The retirement fund body had given an 8.75 per cent rate of interest in 2013-14 as well as 2014-15, higher than 8.5 per cent for 2012-13.The rate of interest was 8.25 per cent in 2011-12. Notably, between 1989-90 and 1999-2000, the EPF interest rate was fixed at a stable 12%. It again remained fixed at 8.50% between 2005-06 and 2009-10. It was hiked to 9.50% in 2010-11 before being lowered again the next year.