The government has ratified the rate of interest on employees’ provident fund at 8.25 per cent for FY25, enabling the retirement fund body EPFO to deposit the annual interest accumulation in the post-retirement funds of over 7 crore subscribers.

EPFO, on February 28, had decided to retain the interest rate of 8.25 per cent on employees’ provident fund (EPF) deposits for the financial year 2024-25, equal to the rate provided in the preceding fiscal. The approved rate of interest for 2024-25 was sent for the approval of the ministry of finance.

“The ministry of finance has given concurrence to an 8.25 per cent rate of interest on the EPF for the 2024-25 fiscal year and labour ministry sent a communication regarding this to the EPFO on Thursday,” a labour ministry official told PTI. Now, the interest amount as per the rate ratified for FY25 will be credited into the accounts of over seven crore subscribers of EPFO.

Compared to many fixed-income instruments, EPF offers relatively higher and stable returns, ensuring steady growth on post-retirement savings.

In March 2022, EPFO had lowered the interest on EPF for 2021-22 to an over four-decade low of 8.1 per cent, from 8.5 per cent in 2020-21.

The 8.10 per cent rate of interest on EPF for 2020-21 was the lowest since 1977-78, when it stood at 8 per cent.

PTI