Big news is coming about the Employees Provident Fund (EPF). It was announced that the retirement fund body, EPFO, has decided to retain the interest rate of 8.25 percent on EPF deposits for 2024-25. In February 2024, the Employees Provident Fund Organization (EPFO) slightly increased the interest rate on EPF to 8.25 percent for 2023-24. This rate was 8.15 percent in 2022-23. In March 2022, the EPFO reduced the interest rate on EPF for its more than seven crore subscribers to 8.1 percent for 2021-22, the lowest in over four decades. In 2020-21, the interest rate was 8.5 percent. Before that, the 8.10 percent interest rate for 2020-21 was the lowest since 1977-78, when the EPF interest rate was eight percent.

EPF Interest Rate to be Sent to Finance Ministry for Approval

An EPFO source stated, “The Central Board of Trustees (CBT), the highest decision-making body of EPFO, has decided to offer an 8.25 percent interest rate on EPF for 2024-25 in its meeting on Friday.” After this decision, the interest rate for 2024-25 will be sent to the Finance Ministry for approval.

Interest Rate to Be Deposited into Accounts of Over Seven Crore Subscribers

Once the government approves the decision, the interest rate for 2024-25 will be deposited into the accounts of more than seven core EPFO subscribers. EPFO provides interest rates only after receiving approval from the government through the Finance Ministry.

In March 2020, EPFO reduced the interest rate on provident fund deposits to a seven-year low of 8.5 percent for 2019-20, down from 8.65 percent for 2018-19.

Historical EPF Interest Rates

The EPFO had offered an interest rate of 8.65 percent to its subscribers in 2016-17 and 8.55 percent in 2017-18. The rate was slightly higher at 8.8 percent in 2015-16. The retirement fund body paid 8.75 percent interest in 2013-14 and 2014-15, up from 8.5 percent in 2012-13. The interest rate stood at 8.25 percent in 2011-12.