EPFO retains interest rate for FY25 at 8.25%

THE EMPLOYEES' PROVIDENT Fund Organisation's (EPFO) Central Board of Trustees (CBT) has recommended that the current annual rate of interest of 8.25% on provident fund deposits could be retained for the current financial year too, according to official sources.

- PRIYANSH VERMA

In 2023-24, the interest rate was set at 8.25%, marking the highest return in three years.

EPFO has over 300 million subscribers, including 74 million active contributors. The decision to maintain the 8.25% interest rate comes at a time when the repo rate was recently reduced to 6.25% (in February) from 6.5%, marking its first cut in two years.

The Union labour ministry will now forward the CBT's recommendation to the finance ministry for approval. Once cleared, EPFO will credit the interest to subscribers for the current fiscal year.

With an 8.25% payout, the provident fund is expected to retain a surplus of around ₹5,300 crore, higher than the ₹300-400 crore surplus estimated for 2023-24.