EPFO has retained the 8.25% interest rate on EPF for 2024-25, providing relief to over 7 crore account holders. The CBT has approved the proposal and it will now be sent to the Finance Ministry. Although interest rates have come down in the past years, 8.25% is considered a satisfactory return in the current economic situation.
The Employees Provident Fund Organization (EPFO) has decided to give 8.25% interest on PF for the financial year 2024-25. This is the second consecutive year when the interest rate has been kept stable at 8.25%. This means that more than seven crore account holders will get the same interest as last year.
PF Interest: When, what was the rate?
EPF interest rates have seen fluctuations in the last few years. Let us know how much it was in which year:
- 2023-24: 8.25%
- 2022-23: 8.15%
- 2021-22: 8.1% (lowest in last 40 years)
- 2020-21: 8.5%
- 2019-20: 8.5%
- 8.65% in 2018-19
What will happen next?
The Central Board of Trustees (CBT), the highest decision-making body of EPFO, has approved this decision. Now this proposal will be sent to the Finance Ministry, after whose approval the interest amount will be transferred to the PF account of the account holders.
Effect of this decision on employees
EPFO may not have increased the interest rate, but it has also not made any reduction in it. After the RBI’s repo rate cut, it was feared that EPFO could also cut the interest rates. In such a situation, keeping the interest rates stable is also a relief decision for crores of employed people. Although interest rates have come down in the last few years, the rate of 8.25% is still considered a satisfactory return in the current economic situation.
