EPFO fixes 8.25% interest rate on employees’ provident fund deposits for 2024-25 | Mint

The Employees’ Provident Fund Organisation (EPFO) board on Friday retained fixed 8.25 per cent interest rates on employees’ provident fund deposits for 2024-25, reported PTI citing sources. The development is likely to dampen the spirits of EPFO subscribers who were expecting a rate hike amid rising inflation and general economic distress.

The EPFO board retained the previous year’s EPF deposits interest rates after they were increased marginally to 8.25 percent for 2023-24, from 8.15 percent in 2022-23.

“The EPFO’s apex decision-making body, Central Board of Trustees (CBT), has decided to provide 8.25 per cent rate of interest on EPF for 2024-25 at its meeting on Friday,” a source told PTI.

After the CBT’s decision, the interest rate on EPF deposits for 2024-25 will be sent to the Ministry of Finance for concurrence.

The Central Board of Trustees (CBT) of the EPFO was scheduled to discuss other issues related to EPF members, including reviewing the implementation of the Supreme Court order on higher PF pension and proposals related to the Employees Deposit Linked Insurance Scheme (EDLI), reported The Hindu.

EPF deposits on four-decade low

EPF deposit interest rates were reduced to a four-decade low mark of 8.1% in 2021-22. The 8.5 per cent interest rate on EPF deposits for 2020-21 was decided by CBT in March 2021. 

The present EPF deposits interest rate is significantly lower than the EPF deposits rate for the year 2015-16, when it used to be 8.8 per cent. After that, the EPFO gradually reduced the EPF deposit rate for its crores of subscribers. There was a significant reduction in the EPF deposit rate during the COVID pandemic.

In March 2020, EPFO lowered the interest rate on provident fund deposits to a seven-year low of 8.5 percent for 2019-20, from 8.65 percent provided for 2018-19. EPFO had provided an 8.65 percent interest rate to its subscribers in 2016-17 and 8.55 percent in 2017-18.