EPF Interest Rate Update: Government Announces Key Decision for 7.6 Crore Provident Fund Members

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

In a significant update for 7.6 crore Employees’ Provident Fund Organization (EPFO) members, the government has decided to maintain the interest rate at 8.25% on Employees’ Provident Fund (EPF) deposits for the financial year 2024-25. This decision follows the slight increase made in February 2024, when the EPF interest rate was raised from 8.15% (2022-23) to 8.25% (2023-24).

EPFO’s Key Decision on Interest Rates

According to sources, the Central Board of Trustees (CBT)—the apex decision-making authority of EPFO—finalized the 8.25% interest rate during a meeting held on Friday. This recommendation will now be forwarded to the Ministry of Finance for final approval.

Over the past few years, EPF interest rates have witnessed fluctuations:

• 2020-21: 8.50%
• 2021-22: 8.10% (Lowest in four decades since 1977-78)
• 2022-23: 8.15%
• 2023-24: 8.25%
• 2024-25: 8.25% (Proposed)

Interest to Be Credited After Government Approval

Once approved by the Finance Ministry, the interest for 2024-25 will be credited to the EPF accounts of more than 7 crore members. It is important to note that EPFO can only implement interest payments after receiving the final nod from the government.

This decision ensures financial stability for EPF subscribers and continues to make Employees’ Provident Fund a secure and reliable long-term investment option for salaried individuals.