Govt ratifies rate of interest at 8.25 per cent on staff’ provident fund for FY25   – OXBIG NEWS NETWORK-OxBig News Network

The authorities has ratified the speed of curiosity on staff’ provident fund at 8.25 per cent for FY25, enabling retirement fund physique EPFO to deposit the annual curiosity accumulation within the post-retirement funds of over 7 crore subscribers.

EPFO, on February 28, had determined to retain the rate of interest of 8.25 per cent on staff’ provident fund (EPF) deposits for the monetary yr 2024-25, equal to the speed supplied within the previous fiscal. The authorized charge of curiosity for 2024-25 was despatched for concurrence of the Ministry of Finance.

“Ministry of Finance has given concurrence to 8.25 per cent rate of interest on the EPF for 2024-25 fiscal year and labour ministry sent a communication regarding this to the EPFO on Thursday,” a labour ministry official instructed PTI.

Now, the curiosity quantity as per the speed ratified for FY25 can be credited to the accounts of over seven crore subscribers of EPFO.

The choice on rate of interest was taken on the 237^th assembly of the central board of trustees of the EPFO chaired by Union Minister for Labour & Employment Mansukh Mandaviya in New Delhi on February 28.

Compared to many fixed-income devices, EPF gives comparatively greater and secure returns, making certain regular progress on post-retirement financial savings.

In February 2024, the EPFO had elevated the rate of interest marginally to eight.25 per cent for 2023-24, from 8.15 per cent in 2022-23.

In March 2022, EPFO had lowered the curiosity on EPF for 2021-22 to an over four-decade low of 8.1 per cent, from 8.5 per cent in 2020-21.

The 8.10 per cent charge of curiosity on EPF for 2020-21 was the bottom since 1977-78, when it stood at 8 per cent.