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EPFO Interest Rate: On February 28, EPFO ​​had decided to maintain the interest rate of EPF at 8.25 per cent. It was sent to the Finance Ministry for approval. It is said that the Finance Ministry has approved this proposal.

EPFO Interest Rate: There is good news for crores of people doing private jobs. They will get 8.25 per cent interest on their money deposited in EPF. The central government has approved the proposal of an 8.25 per cent interest rate on EPF. This interest will be for the financial year 2024-25. It is said that more than 7 crore subscribers of EPF will benefit from this. However, this is equal to the interest rate of a year ago. The 

Finance Ministry approved

EPFO had decided to maintain the interest rate of EPF at 8.25 per cent on 28 February. It was sent to the Finance Ministry for approval. It is said that the Finance Ministry has approved this proposal. A Labour Ministry official said, “The Finance Ministry has approved the proposal of an 8.25 per cent interest rate for the last financial year. This will be for the fiscal year 2024-25. The Labour Ministry informed EPFO ​​about this decision on May 22.”

EPFO ​​benefits 7 crore subscribers

After this decision of the government, the way has been cleared for the interest money to come into the EPF accounts of more than 7 crore subscribers of EPF. On 28 February, the Central Board of Trustees (CBT) of EPFO ​​​​was meeting. In this meeting led by Union Labor Minister Mansukh Mandaviya, a proposal to maintain the interest rate at 8.25 percent for FY25 was decided.

Decision to increase interest in February 2024

EPFO ​​had decided to increase the interest rate on EPF deposits in February 2024. It increased it from 8.15 percent to 8.25 percent. This increase was made for the deposits of financial year 2023-24. The interest rate in the financial year 2022-23 was 8.15 percent. In March 2022, EPFO ​​reduced the interest rate from 8.5 percent to 8.1 percent. This was the lowest interest rate in more than 4 decades.

Meaning of EPF Account

People working in the private sector come under the EPFO ​​scheme. In this, every month 12 per cent of the employee’s salary (basic plus DA) is deposited in his EPF account. The employer deposits the same amount in the employee’s EPF account every month. EPF account has two parts – EPF and EPS. 8.33 per cent of the employer’s contribution is deposited in EPS every month. When the employee retires, he gets the entire amount deposited in the EPF account in a lump sum. He gets a pension every month from the money deposited in the EPF.