EPFO board to meet on Feb 28: decide the interest rate for the 2024-25

EPFO board to meet on Feb 28: decide the interest rate for the 2024-25

New Delhi: The Employees’ Provident Fund Organisation (EPFO) will decide the interest rate for the financial year 2024-25 at its central board of trustees (CBT) meeting on February 28. The rate is expected to remain close to 8.25%, according to sources.

EPFO raised the interest rate to 8.25% for FY24, the highest in three years. In FY23, it was 8.15%, up from 8.10% in FY22. The lowest rate in recent history was 8.10% in 2021-22, the lowest since 1977-78, when it stood at 8%.

Over the past decade, interest rates have fluctuated, with the highest being 9.50% in 2010-11. The rate remained at 8.50% from 2019 to 2021, before dropping to 8.10% in 2021-22.

Here is a brief overview of EPF interest rate history:
Year EPF Interest Rates
2022 – 2023 8.15%
2021 – 2022 8.10%
2020 – 2021 8.50%
2019 – 2020 8.50%
2018 – 2019 8.65%
2017 – 2018 8.55%
2016 – 2017 8.65%
2015 – 2016 8.80%
2013 – 2015 8.75%
2012 – 2013 8.50%
2011 – 2012 8.25%
2010 – 2011 9.50%
2005 – 2010 8.50%
2004 – 2005 9.50% (9% Interest + 0.5% Golden Jubilee bonus interest)
2001 – 2004 9.50%
2000 – 2001 12% (April-June, 2001) and 11% (July 2001 onwards) on the monthly running balance
1989 – 2000 12.00%
1988 – 1989 11.80%
1987 – 1988 11.50%
1986 – 1987 11.00%
1985 – 1986 10.15%
1984 – 1985 9.90%
1983 – 1984 9.15%
1982 – 1983 8.75%

EPFO proposes the interest rate, which the CBT reviews. The finance ministry must approve the decision before notifying beneficiaries. Once approved, the interest is credited to EPFO subscribers.

How EPF interest is calculated

EPF interest is calculated monthly but credited at the end of the financial year. Accounts with no contributions for 36 months become dormant and do not earn interest. The final announcement depends on the finance ministry’s approval after the CBT meeting. If confirmed at 8.25%, the rate will remain unchanged from the previous year.