The federal government 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 12 months 2024-25, equal to the speed supplied within the previous fiscal. The accredited price of curiosity for 2024-25 was despatched for concurrence of the Ministry of Finance.
“Ministry of Finance has given concurrence to eight.25 per cent price of curiosity on the EPF for 2024-25 fiscal 12 months and labour ministry despatched a communication concerning this to the EPFO on Thursday,” a labour ministry official instructed information company PTI. Now the curiosity quantity as per the speed ratified for FY25 might be credited into the accounts of over seven crore subscribers of EPFO.
The choice on rate of interest was taken on the 237th 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. In comparison with many fixed-income devices, EPF gives comparatively increased and secure returns, guaranteeing regular progress on post-retirement financial savings.
EPFO rate of interest modifications
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 price of curiosity on EPF for 2020-21 was the bottom since 1977-78, when it stood at 8 per cent.
EPFO provides 1.46 million members in March
EPFO, which manages retirement financial savings for salaried staff, reported a net addition of 1.46 million subscribers in March, with simply over half being first-time enrollees, in response to an official assertion on Wednesday.
EPFO recorded 754,000 new member enrollments in March. Provisional knowledge confirmed that internet subscriber additions rose by 1.15% in comparison with March 2024, reflecting stronger employment alternatives and rising consciousness of worker advantages, supported by EPFO’s outreach efforts. New subscriptions in March rose 2.03% sequentially, and have been up 0.98% year-on-year.
