EPFO : The Employees’ Provident Fund Organization (EPFO) will soon decide the interest rate on Provident Fund. The 237th Central Board of Trustees meeting of EPFO is going to be held on 28 February 2025.
This meeting will be chaired by Union Labor and Employment Minister Dr. Mansukh Mandaviya. Employer organizations, trade unions, central and state government officials will attend the meeting. Here the interest on PF account will be decided. Employees are hoping that the interest on PF should increase but such hopes are low.
The main decision will be on PF interest rate
However, the details of the official agenda of the meeting have not been made public yet. But according to reports, it will mainly decide the interest rate of the Employees Provident Fund (EPF) for the financial year 2024-25. Experts believe that this rate may remain at 8.25% like last year.
Impact of EPF interest rate on employees
Under the EPFO Act, 12% of the employees’ basic salary and dearness allowance (DA) goes into the PF account. The employer also contributes the same amount, out of which 3.67% goes to EPF and 8.33% to the Employees’ Pension Scheme (EPS).
Benefits of EPF
Savings and Safety – EPF is a government-guaranteed scheme that helps employees save for retirement.
Tax free interest – The interest earned on EPF is tax-free (up to a prescribed limit), making it an attractive investment option.
High interest rates and fixed returns – EPF offers better and stable returns compared to other fixed-income schemes.
Emergency Financial Support – Partial withdrawal can be made from PF to meet needs like medical emergency, education, or purchasing a home.
PF interest rates in previous years
CBT decides the interest rate of EPF every year in consultation with the Finance Ministry. After this meeting of EPFO, a formal announcement will be made regarding the interest rate. Employees hope that the returns on their savings will increase. The interest rates have been like this in the last 15 years.
Annual Interest Rate (%)
- 2010-11: 9.50
- 2011-12: 8.25
- 2012-13: 8.50
- 2013-14: 8.75
- 2014-15: 8.75
- 2015-16: 8.80
- 2016-17: 8.65
- 2017-18: 8.55
- 2018-19: 8.65
- 2019-20: 8.50
- 2020-21: 8.50
- 2021-22: 8.10
- 2022-23: 8.15
- 2023-24: 8.25
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