Crores of account holders of the Employees’ Provident Fund Organization (EPFO), under the Ministry of Labor and Employment, may receive good news this week. The Central Board of Trustees (CBT) of EPFO is expected to meet on Friday, February 28, to decide the interest rates for the Employees’ Provident Fund (EPF) for the financial year 2024-25. This meeting will be chaired by Labor and Employment Minister Mansukh Mandaviya.
EPFO has around 7 crore account holders. The organization had set an interest rate of 8.25% on EPF for the financial year 2023-24. Before that, the interest rate was 8.15% in 2022-23 and 8.10% in 2021-22.
EPF Interest Rate Likely to Remain 8.25%
EPFO has earned excellent returns on its investments this financial year. Because of this, the EPF interest rate of 8.25% may be maintained for 2024-25. A final decision will be taken in the upcoming meeting. After approval from the Central Board of Trustees (CBT), the proposal will be sent to the Finance Ministry for final approval.
#NewsFlash | Government approves 8.15% return on #EPF deposits for #FY23 pic.twitter.com/9aWWQXhQfp
— CNBC-TV18 (@CNBCTV18Live) July 24, 2023
EPFO Ensures Social Security for Private Sector Employees
EPFO runs a social security scheme for private sector employees. Every month, a fixed amount is deducted from employees’ salaries as PF and deposited into their EPF account. The company also contributes the same amount. EPFO sets the interest rate every year on the total deposited amount.
Day 2,Session 3 Digitalization for Social Justice – Harnessing AI for Decent Work & Equity
Experts explored a human-centric AI approach to protect workers’ rights, ensure inclusivity & align AI with SDGs for a just & equitable future of work. (1/3) pic.twitter.com/3uBEKj5n5K
— Ministry of Labour & Employment, GoI (@LabourMinistry) February 25, 2025
Discussion on Interest Stabilization Reserve Fund
According to media reports, the CBT may discuss creating an Interest Stabilization Reserve Fund. The aim is to provide stable returns to around 7 crore EPFO members, even if interest rates fluctuate or investment returns are low. If this proposal gets approval from the CBT, it may be implemented from the financial year 2026-27.