The federal government has ratified the speed of curiosity on workers’ provident fund at 8.25 per cent for FY25, enabling retirement fund physique EPFO to deposit the annual curiosity accumulation within the post-retirement funds of over 7 crore subscribers.
EPFO, on February 28, had determined to retain the rate of interest of 8.25 per cent on workers’ provident fund (EPF) deposits for the monetary yr 2024-25, equal to the speed supplied within the previous fiscal. The authorized fee of curiosity for 2024-25 was despatched for concurrence of the Ministry of Finance.
“Ministry of Finance has given concurrence to eight.25 per cent fee of curiosity on the EPF for 2024-25 fiscal yr and labour ministry despatched a communication concerning this to the EPFO on Thursday,” a labour ministry official informed PTI.
Now the curiosity quantity as per the speed ratified for FY25 can be credited into the accounts of over seven crore subscribers of EPFO.
The choice on rate of interest was taken on the 237th assembly of the central board of trustees of the EPFO chaired by Union Minister for Labour & Employment Mansukh Mandaviya in New Delhi on February 28.
In comparison with many fixed-income devices, EPF affords comparatively increased and steady returns, guaranteeing regular progress on post-retirement financial savings.
In February 2024, the EPFO had elevated the rate of interest marginally to eight.25 per cent for 2023-24, from 8.15 per cent in 2022-23.
Story continues beneath this advert
In March 2022, EPFO had lowered the curiosity on EPF for 2021-22 to an over four-decade low of 8.1 per cent, from 8.5 per cent in 2020-21.
The 8.10 per cent fee of curiosity on EPF for 2020-21 was the bottom since 1977-78, when it stood at 8 per cent.