New Delhi, May 24 (HS):The central government has confirmed an interest rate of 8.25% for employees’ provident fund (EPF) deposits for the financial year 2024-25. This ensures annual interest crediting for over 70 million EPF members. A formal notification has been issued, with the Ministry of Finance’s approval received. The Ministry of Labor communicated this decision, initially conveyed to the EPFO on Thursday. The interest rate of 8.25% matches the previous year’s rate, maintaining consistency in returns. Under the EPFO Act, 12% of an employee’s basic salary and dearness allowance are contributed to the EPF account, matched by employers. Specifically, 3.67% of the employer’s contribution goes to the PF account, while 8.33% is allocated to the pension scheme. The employee’s full contribution is directed to the EPF.

Notably, the EPFO had lowered the interest rate to 8.10% for the financial year 2021-22, marking the lowest rate in over four decades. Previous rates included 8.5% for 2020-21 and 8.65% for 2018-19, with the lowest historically recorded at 8% in 1977-78. Comparing rates over the years: 8.75% for 2013-15, 8.80% for 2015-16, and 8.25% for 2011-12 showcase the fluctuations in returns over time.

Hindusthan Samachar / Jun Sarkar