Good News for EPFO Subscribers: Interest Rate Stays at 8.25% for FY25
EPFO Maintains Interest Rate at 8.25% for FY25
The government has officially approved an interest rate of 8.25% on employees’ provident fund (EPF) deposits for the financial year 2024-25. This means over 7 crore EPFO subscribers will continue to enjoy this consistent rate of return on their retirement savings.
The Employees’ Provident Fund Organisation (EPFO) had first proposed retaining the rate at 8.25% back in February, matching the rate from the previous fiscal year. This decision was then sent to the Ministry of Finance for approval. The Ministry has now given its go-ahead, and the Labour Ministry has officially informed the EPFO.
EPF: A Solid Investment for Retirement
Compared to many other fixed-income investments, EPF consistently offers relatively high and stable returns, making it a reliable choice for building a comfortable retirement nest egg.
The EPFO’s decision comes after a period of fluctuating interest rates. In February 2024, the rate was marginally increased to 8.25% from 8.15% in 2022-23. In 2021-22, the rate dipped to an over four-decade low of 8.1%, before rebounding to 8.5% in 2020-21.
EPFO Continues to Grow
Meanwhile, EPFO continues to attract new members, adding 1.46 million subscribers in March 2023, with over half being first-time enrollees. This highlights the growing importance of EPF in securing the financial future of Indian workers.
