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Retirement fund body Employees Provident Fund Organisation (EPFO) has retained the interest rate of 8.25% on Employees' Provident Fund (EPF) deposits for 2024-25. This decision was taken in the meeting of the Central Board of Trustees (CBT) held on Friday. Now this interest rate will be sent to the Ministry of Finance for government approval. After getting the green signal from the government, this interest will be added to the accounts of more than 7 crore members of EPFO.

How much interest was received on EPF in the last years?

EPF interest rates have seen fluctuations in the last few years. The rate stood at 8.25% in 2024-25 and 2023-24, while it fell to 8.15% in 2022-23 and 8.1% in 2021-22, the lowest in four decades. Earlier, the interest rate was 8.5% in 2020-21 and 2019-20. The rate was 8.65% in 2018-19 and 8.55% in 2017-18. In 2016-17 also, 8.65% interest was given on EPF. Especially in 2021-22, the rate of 8.1% was the lowest since 1977-78, when the EPF interest rate was just 8%.

How is the EPF interest rate decided?

The Central Board of Trustees (CBT) of EPFO ​​​​decides the interest rate and then it is sent to the Finance Ministry for approval. When the government agrees to it, then this interest is credited to the accounts of EPFO ​​​​subscribers.

EPF Interest Rate 2024-25: What does it mean for you?

If you are an EPF account holder, then the 8.25% interest rate means that you will get returns at this rate on your deposits. Although the interest rate has remained stable as compared to earlier, how beneficial this rate will be compared to inflation and other investment options is a matter to consider.

Effect of low EPF interest rate

In the last few years, the EPF interest rate has come down, due to which many employees have got low returns on retirement savings. EPF is a long-term savings option, where a part of the employee's salary is deposited and the company also contributes to it. However, the reduction in interest rate affects the returns.

Can the EPF interest rate increase in the future or not?

The government's goal is to make retirement savings safe and beneficial. Currently, EPFO ​​manages savings and pension funds for more than 7 crore employees. Whether the EPF interest rate can increase in the future or not will depend on the economy, investment returns, and the government's financial policies.

Important things related to EPF

The interest rate on EPF is changed every year.

Interest is added to the accounts only after the approval of the government.

EPF money is considered a safe investment option.

You can use the UMANG app or EPFO ​​​​website to check EPF balance.

A matter of relief for employees

If you want your retirement savings to increase more, then apart from EPF, you can also consider investment options like PPF (Public Provident Fund), NPS (National Pension System), and Mutual Funds. With the EPF interest rate remaining at 8.25%, employees will get stable returns, but it is important to look at other investment options for more growth.

EPFO has maintained the interest rate at 8.25% for 2024-25, which is a matter of relief for the employees. However, if the interest rates had increased, the subscribers would have benefited more.

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