8.25% interest rate retained on employees’ provident fund deposits for 2024-25

Retirement fund body EPFO on Friday decided to retain an interest rate of 8.25 per cent on employees' provident fund (EPF) deposits for 2024-25, as provided in the previous fiscal, benefitting over seven crore subscribers.

In February 2024, the Employees' Provident Fund Organisation (EPFO) had increased the interest rate on EPF marginally to 8.25 per cent for 2023-24, from 8.15 per cent in 2022-23.

A labour ministry statement said, "CBT (Central Board of Trustees) recommended 8.25 per cent annual rate of interest to be credited on EPF accumulations in members' accounts for the financial year 2024-25."

The ministry said the interest rate would be officially notified by the government, following which EPFO would credit the rate of interest to the subscribers' accounts.

According to the statement, the decision on interest rate was taken at the 237th meeting of the CBT of the EPFO chaired by the Union Minister for Labour and Employment Mansukh Mandaviya in New Delhi on Friday.

The ministry stated that compared to many other fixed-income instruments, the Employees' Provident Fund (EPF) offers relatively high and stable returns, ensuring steady growth of savings.

The interest earned on EPF deposits is tax-free (up to a specified limit), making it a highly attractive investment option for salaried individuals.

The CBT, under the chairmanship of Mandaviya, took a series of decisions, including enhancement of insurance benefits under Employees' Deposit-Linked Insurance (EDLI) Scheme.

Following the actuarial valuation of the EDLI scheme, the Board approved key modifications in the scheme to provide greater financial security and support to the family members.