The Employees' Provident Fund Organisation (EPFO) has decided to retain the rate of interest on workers' provident fund (EPF) deposit at 8.25% for the financial year 2024-25, sources indicated on Friday.
In February 2024, EPFO had increased the interest rate marginally to 8.25% for 2023-24 from 8.15% for 2022-23. Previously, in March 2022, the 2021-22 interest rate was cut to 8.1%, the lowest in over four decades. It was a reduction from 8.5% in 2020-21. The interest rate hadn't been as low since 1977-78, when it was 8%.
A source disclosed that the EPFO's apex body, its Central Board of Trustees (CBT), approved the 8.25% rate of interest for 2024-25 at a meeting on Friday.
The interest rate recommended would be tabled before the Ministry of Finance for final approval after the CBT decision. The interest will be credited to the accounts of over seven crore EPFO members after the government gives its approval.
Historically, EPFO has revised interest rates based on financial and economic conditions. In March 2020, the rate was reduced to 8.5% for 2019-20 from 8.65% in 2018-19. Similarly, subscribers were provided with 8.65% in 2016-17 and 8.55% in 2017-18, whereas the rate was slightly higher at 8.8% in 2015-16.
Earlier, the EPFO has given 8.75% for 2013-14 and 2014-15, which was more than 8.5% given in 2012-13. The interest rate was 8.25% in 2011-12, which the same is maintained for 2024-25.
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