NEW DELHI: Government has ratified the interest rate of 8.25% to be paid to over 7 crore subscribers of the retirement body Employees Provident Fund Organisation (EPFO). Sources said now the interest rate for 2024-25 would be credited to the account of the subscribers soon.
In February, the Central Board of Trustees (CBT) had recommended a 8.25% annual rate of interest to be credited on EPF accumulations in members' accounts for financial year 2024-25. The interest rate has to be approved by finance ministry, and once this process is complete, the EPF credits the rate of interest into subscribers' accounts.
The EPFO had decided to increase the rate to 8.25% in 2023-24, up from the 8.15% in 2022-23. The 8.25% rate was retained in 2024-25 by the CBT.
In March 2022, the EPFO had pegged the rate on EPF for 2021-22 to a more than four-decade low of 8.1% , below the 8.5% set for in 2020-21. The 8.1% interest rate in 2020-21 was the lowest since 1977-78, when it was at 8%.
Compared to many other fixed-income instruments , the Employees' Provident Fund (EPF) offers relatively high and stable returns, ensuring steady growth of savings.
The interest earned on EPF deposits is tax-free (up to a specified limit), and this makes it a highly attractive investment option for salaried individuals. Government is of the view that it reflects strong confidence in the credit profile of EPFO's investments and its ability to deliver competitive returns to its members. tnn
In February, the Central Board of Trustees (CBT) had recommended a 8.25% annual rate of interest to be credited on EPF accumulations in members' accounts for financial year 2024-25. The interest rate has to be approved by finance ministry, and once this process is complete, the EPF credits the rate of interest into subscribers' accounts.
The EPFO had decided to increase the rate to 8.25% in 2023-24, up from the 8.15% in 2022-23. The 8.25% rate was retained in 2024-25 by the CBT.
In March 2022, the EPFO had pegged the rate on EPF for 2021-22 to a more than four-decade low of 8.1% , below the 8.5% set for in 2020-21. The 8.1% interest rate in 2020-21 was the lowest since 1977-78, when it was at 8%.
Compared to many other fixed-income instruments , the Employees' Provident Fund (EPF) offers relatively high and stable returns, ensuring steady growth of savings.
The interest earned on EPF deposits is tax-free (up to a specified limit), and this makes it a highly attractive investment option for salaried individuals. Government is of the view that it reflects strong confidence in the credit profile of EPFO's investments and its ability to deliver competitive returns to its members. tnn
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