The EPFO Central Board of Trustees (CBT), the apex decision-making body of the retirement fund body, has decided to keep the interest rate unchanged at 8.25% for the financial year 2024-25, according to sources.
The status quo on rate by the Employees’ Provident Fund Organisation (EPFO) is on expected lines amidst falling markets and bond yields.
As per norms, the EPFO first suggests the interest rate on employees’ provident fund deposits for any given year, which is subsequently authorised by the CBT, the tripartite body consisting of representatives from employees, employers, and the union and state governments. The Union Labour Minister chairs the CBT meeting.
Once the rate decision is authorised by the CBT, it goes for the finance ministry’s approval and gets notified. The interest amount at notified rate is subsequently credited to the accounts of EPFO subscribers.
The proposed rate is mostly approved by the CBT after computing the income and expenditure of the EPFO.
Last year, the EPFO raised the interest rate to 8.25% for the FY24, up from 8.15% for the previous year. This rate is the highest in the last 3 years.
Why EPFO panel maintained status quo
The EPFO panel retained the interest rate as its investment panel is looking to maintain a surplus to tackle emergency fund needs. Various reports suggest that higher settlement of claims has left a smaller pool to tap for the annual EPF credits.
Also read: EPF withdrawal now via UPI process
How has the interest rate changed over time?
Last year, the EPFO revised the interest rate to 8.25% for FY2023-24 from 8.15% in the previous financial year.
The lowest rate, however, in recent times was 8.10% in FY2021-22. Between 2019 and 2021, rates remained steady at 8.50%. The highest EPF interest rate in the last decade stood at 9.50% in FY2010-11.
EPFO executive committee meeting
On February 26, the 112th meeting of the Executive Committee (EC) of the Central Board of Trustees, EPF took place.
Key agenda discussed at the meeting were as follows:
The panel was informed that the Centralized Pension Payment System (CPPS), implemented across all regional offices in January 2025 through NPCI (NACH) payments, has begun yielding positive outcomes.
The panel emphasized the need to transition to the Aadhaar-Based Payment System (ABPS) in a time-bound manner,
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