The government has approved an 8.25% interest rate on Employees' Provident Fund (EPF) deposits for FY 2024-25, benefiting over 70 million subscribers. The labour ministry has instructed EPFO to credit the interest, unchanged from FY24, after finan...
By ET Bureau |
ET Online
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The government has ratified an interest rate of 8.25% on Employees’ Provident Fund (EPF) deposits for the financial year 2024-25, benefitting over 70 million subscribers.
EPF offers relatively high and stable returns compared to other fixed-income instruments, ensuring steady growth of savings for its subscribers. Besides, the interest earned on EPF deposits is tax-free up to a specified limit, making it a highly attractive investment option for salaried individuals. The central board of trustees of EPFO had proposed retaining the 8.25% rate for FY25 at its 237th meeting in February. The labour ministry then sent it to the finance ministry for final approval.
The EPFO had given an interest of 8.25% for FY24 on an income of Rs 1.07 lakh, which was the highest yet, on a total principal amount of about Rs 13 lakh crore.
EPF interest rate retained at 8.25% for FY26
