EPF Interest Rate: The central government has approved an interest rate of 8.25% on Employees’ Provident Fund (PF) deposits for the financial year 2024-25. This is great news as it means that you will get more returns on the amount deposited in your PF account than before.
This interest rate proposed by the EPFO in February has now got final approval from the Finance Ministry. Soon this interest amount will be deposited in your accounts, which will give a big boost to your retirement savings.
25% interest rate retained for the second consecutive year
The decision on the interest rate of the Employees’ Provident Fund Organization (EPFO) was taken in February 2024 at a meeting of the Central Board of Trustees (CBT) of the EPFO, which was chaired by Labor Minister Mansukh Mandaviya. In this important meeting, a proposal to maintain the interest rate of 8.25% for the financial year 2024-25 was passed. It was then sent to the Finance Ministry for final approval, which has now accepted it.
This is the second consecutive year that the interest rate on EPF will remain at 8.25%, which is one of the best rates among fixed-income savings schemes in India. This decision is extremely beneficial for investors who save for the long term, especially at a time when interest rates are fluctuating in the market. This rate not only keeps your deposits safe but also helps it grow faster.
EPF Interest Rate Journey
EPF interest rates have been changing from time to time depending on the economic conditions and the investment performance of the EPFO. In March 2022, the EPFO reduced the interest rate on EPF deposits for 2021-22 to a four-decade low of 8.1 percent for its over 7 crore subscribers, from 8.5 percent in 2020-21. The interest rate of 8.10 percent on EPF deposits for 2020-21 was the lowest since 1977-78 when the EPF interest rate was 8 percent.
In March 2020, the EPFO reduced the interest rate on PF deposits for 2019-20 to a 7-year low of 8.5 percent from 8.65 percent provided for 2018-19. The EPFO had provided an interest rate of 8.65 percent to its subscribers in 2016-17 and 8.55 percent in 2017-18.
The interest rate was slightly higher at 8.8 percent in 2015-16. The EPFO had provided an interest rate of 8.75 percent in both 2013-14 and 2014-15, higher than 8.5 percent in 2012-13. The interest rate was 8.25 percent in 2011-12.
This decision is a clear indication of stable and reliable returns for EPF savers. This shows that the Government values the retirement savings of employees and is committed to providing them with safe and attractive returns.