EPFO Retains Interest Rate at 8.25% for Provident Fund Deposits in 2024-25

The Employees' Provident Fund Organisation (EPFO) on Friday decided to maintain an interest rate of 8.25% on Employees' Provident Fund (EPF) deposits for the financial year 2024-25. This decision was taken at the meeting of EPFO's apex body, the Central Board of Trustees (CBT), sources confirmed.

This marks the second consecutive year EPFO has retained the interest rate at 8.25%, after raising it marginally from 8.15% in 2022-23. In February 2024, EPFO had increased the EPF interest rate to 8.25% for the financial year 2023-24.

Historical Interest Rate Trends of EPFO​

EPFO has seen fluctuations in interest rates over recent years, reaching a notable low in March 2022. For the year 2021-22, EPFO reduced the EPF interest rate to 8.1%, the lowest since 1977-78 when the interest rate stood at 8%. Previously, the interest rate was at 8.5% during 2020-21.

A summary of recent EPF interest rates:

• 2024-25: 8.25% (unchanged from 2023-24)
• 2023-24: 8.25%
• 2022-23: 8.15%
• 2021-22: 8.10% (over four-decade low)
• 2020-21: 8.50%
• 2019-20: 8.50% (seven-year low, down from 8.65% in 2018-19)

Earlier interest rates included 8.65% in 2016-17, 8.55% in 2017-18, and 8.8% in 2015-16. The EPFO provided 8.75%interest during both 2013-14 and 2014-15, slightly higher than the 8.5% offered in 2012-13. Back in 2011-12, the EPF interest rate matched the current level of 8.25%.

Process for EPF Interest Rate Implementation​

Following the CBT’s decision, the proposed interest rate of 8.25% for 2024-25 will now be sent to the Ministry of Finance for final approval. After government ratification, EPFO will credit the interest into the accounts of its more than seven crore subscribers.

EPFO announces EPF interest rates only after formal concurrence from the finance ministry, ensuring transparency and governmental oversight in the interest rate determination process.