The Ministry of Finance has officially ratified the Employees’ Provident Fund (EPF) interest rate at 8.25% for the financial year 2024-25, ensuring steady returns on retirement savings for over 7 crore subscribers.
The Employees’ Provident Fund Organisation (EPFO) had initially set the interest rate for FY25 at the same level as the previous fiscal year. After the Finance Ministry’s concurrence, the EPFO is now set to credit the approved interest amount into subscribers’ accounts.
Union Minister for Labour & Employment Mansukh Mandaviya, who chaired the 237th meeting of the Central Board of Trustees, confirmed this decision on February 28. The stable EPF interest rate underscores its appeal compared to other fixed-income investment options, ensuring robust financial security post-retirement.
The EPF interest rate has fluctuated over the years. In February 2024, it was raised marginally to 8.25% from 8.15% in 2022-23. However, in March 2022, EPFO had lowered the rate to a four-decade low of 8.1%, down from 8.5% in 2020-21.
With the Finance Ministry’s approval, EPFO members can expect their savings to continue growing at 8.25%, reinforcing the provident fund’s reliability as a retirement investment vehicle.
