Modi government confirms 8.25% interest rate on EPF for FY25
What's the story
The Indian government has officially confirmed an interest rate of 8.25% on Employees' Provident Fund (EPF) deposits for the fiscal year 2024-25.
The decision enables the Employees' Provident Fund Organisation (EPFO) to credit annual interest earnings into the post-retirement accounts of over seven crore subscribers.
The confirmation was received by the EPFO from the Ministry of Labour, a ministry official told PTI.
Decision process
Interest rate decision made at EPFO board meeting
The interest rate decision was taken at the 237th meeting of the EPFO's Central Board of Trustees, which was chaired by Union Minister for Labour & Employment Mansukh Mandaviya.
The approved interest rate for FY25 was subsequently forwarded to the Ministry of Finance for approval.
This is a continuation from FY24, where the same interest rate was maintained.
Investment benefits
EPF offers stable returns
The EPF offers relatively higher and stable returns than many fixed-income instruments.
This characteristic guarantees steady growth on post-retirement savings, making it an appealing option for those planning their retirement funds.
Notably, in February 2024, the EPFO had marginally hiked the interest rate to 8.25% for FY24 from 8.15% in FY23.