The central government has fixed the interest rate on Employees Provident Fund (EPF) at 8.25 per cent for the financial year 2024-25.
The central government has fixed the interest rate on Employees’ Provident Fund (EPF) at 8.25 per cent for the financial year 2024-25. According to a PTI report, the central government has approved an interest rate of 8.25 per cent on Employees’ Provident Fund (EPF) deposits for the financial year 2024-25.
This rate was recommended by the Central Board of Trustees (CBT) of the Employees’ Provident Fund Organization (EPFO) earlier this year. This move of the government is expected to benefit more than 7 crore salaried employees across the country.
EPFO achieved a historic high of settlement of 2.16 crore auto-claims during the current financial year till March 6, 2025, which is more than 89.52 lakh in 2023-24. According to the report, the Finance Ministry has approved 8.25 per cent interest rate on EPF for the financial year 2024-25 and the Labor Ministry has sent a letter to EPFO in this regard on Thursday.
Who decides the interest rate
The EPF interest rate is proposed annually by the EPFO’s Central Board of Trustees (CBT), which comprises representatives of employers, employees, state governments and officials from the Labour Ministry. The final decision requires the approval of the Finance Ministry, only after which it is notified and credited.
The rate was 8.65 per cent in 2018-19 and 8.5 per cent in 2019-20, it was reduced to 8.1 per cent in 2021-22, the lowest in the last four decades – it has been revised upwards in the last two years.
