The Central Government has decided to maintain the interest rate on Employees’ Provident Fund (EPF) deposits at 8.25% for the financial year 2024–25, a move that aligns with the recommendation of the Central Board of Trustees (CBT) of the Employees’ Provident Fund Organisation (EPFO) during its meeting held on February 28.
This decision follows last year’s marginal hike of 0.10%, raising the rate from 8.15% in FY 2023–24, after a steady climb from 8.10% in FY 2022–23. The current rate marks the highest EPF interest level in the past four years, signalling a cautious yet optimistic approach by the Centre amid fluctuating economic conditions.
A Look Back: EPF Interest Rate Trends
Over the past decade, EPF interest rates have witnessed several adjustments:
- 2021–22: Interest was slashed to 8.1%, the lowest in over four decades.
- 2020–21: Slightly higher at 8.5%, but still below the pre-pandemic levels.
- 2018–19 and 2019–20: Held at 8.65% and 8.5% respectively.
- 2016–17 to 2017–18: Ranged between 8.55% and 8.65%.
- 2015–16: Touched a recent peak of 8.8%.
- Earlier, in 2011–12, the interest stood at 8.25%, matching the current rate.
The consistent adjustments reflect EPFO’s balancing act between ensuring competitive returns for over seven crore subscribers and managing the financial sustainability of the fund.
Key Takeaway
With the interest rate locked at 8.25%, EPF continues to be a reliable and tax-efficient savings avenue for salaried employees. The move ensures stable earnings amid economic uncertainties, while also reinforcing trust in India’s retirement fund management system.
