EPFO Retains 8.25% Interest Rate On Provident Fund Deposits For FY2024-25: Report

The retirement fund body had previously increased the interest rate to 8.25 per cent for 2023-24, up from 8.15 per cent in 2022-23

The interest rate will be credited to over seven crore subscribers once it receives approval from the Finance Ministry

Source : ABPLIVE AI

The Employees' Provident Fund Organisation (EPFO) has chosen to keep the EPF interest rate at 8.25 per cent for the 2024-25 financial year, according to a PTI report citing sources. In February 2024, EPFO had increased the rate to 8.25 per cent for the 2023-24 period, up from 8.15 per cent in 2022-23.

The proposed interest rate is finalised by the EPFO's Central Board of Trustees (CBT), which includes representatives from employers, employees, state governments, and the labour ministry. However, the finance ministry must approve the rate before it is officially notified and credited to subscribers, usually in the second half of the following year.

The retirement fund body had previously increased the interest rate to 8.25 per cent for 2023-24, up from 8.15 per cent in 2022-23. In March 2022, the EPF rate was reduced to a four-decade low of 8.1 per cent for 2021-22. The highest recent rate was 8.65 per cent in 2018-19, with a gradual decline in subsequent years.

Historically, EPF interest rates have fluctuated, with 8.65 per cent in 2018-19, 8.5 per cent in 2019-20, and 8.1 per cent in 2021-22, showing a downward trend. The highest recent rates were 8.8 per cent in 2015-16 and 8.75 per cent in both 2013-14 and 2014-15. The current 8.25 per cent rate for 2024-25 represents stability after several recent cuts, offering consistent returns for EPF subscribers while awaiting final approval from the government.

In 2024-25, the retirement body processed 50.8 million claims of Rs 2.05 lakh crore, an increase from 44.5 million claims worth Rs 1.82 lakh crore in 2023-24. The interest rate of 8.25 per cent for 2023-24 was based on an income of Rs 1.07 lakh crore, the highest ever, from a principal of Rs 13 lakh crore. This marked an increase from the 8.15 per cent rate in 2022-23, which was based on an income of Rs 91,151.66 crore and a principal of Rs 11.02 lakh crore.

Here’s How You Can Check Your EPF Balance

• Via EPFO Portal: Visit the EPFO website, navigate to the "Member Passbook" section, and log in using your UAN and password to view your EPF balance, contributions, and interest earned.
• Via Umang App: Download the Umang app, register with your phone number, and access services such as EPF passbook, claims, and balance checks.
• Via Missed Call: Give a missed call to 011-22901406 from your UAN-registered mobile number (ensure Aadhaar, PAN, and bank details are linked).