Government fixes 8.25% PF interest rate for FY 2024-25

NEW DELHI: Government has ratified the interest rate of 8.25% to be paid to over 7 crore subscribers of the retirement physique Employees Provident Fund Organisation (EPFO). Sources stated now the interest rate for 2024-25 could be credited to the account of the subscribers quickly.In February, the Central Board of Trustees (CBT) had really useful a 8.25% annual rate of interest to be credited on EPF accumulations in members’ accounts for monetary 12 months 2024-25. The interest rate needs to be permitted by finance ministry, and as soon as this course of is full, the EPF credit the rate of interest into subscribers’ accounts.The EPFO had determined to extend the rate to eight.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 greater than four-decade low of 8.1% , under the 8.5% set for in 2020-21. The 8.1% interest rate in 2020-21 was the bottom since 1977-78, when it was at 8%.Compared to many different fixed-income devices, the Employees’ Provident Fund (EPF) provides comparatively excessive and steady returns, making certain regular progress of financial savings.The interest earned on EPF deposits is tax-free (as much as a specified restrict), and this makes it a extremely enticing funding choice for salaried people. Government is of the view that it displays sturdy confidence within the credit score profile of EPFO’s investments and its means to ship aggressive returns to its members. tnn