EPF Interest Rate 2024-25: The Provident Fund (PF), managed by the Employees Provident Fund Organization (EPFO), remains a trusted retirement savings scheme for millions of employees in India. Every year, EPFO announces the interest rate for PF deposits, and this year, the buzz is that the rate might remain stable. Sources suggest that the Central Board of Trustees (CBT) will meet on February 28 to finalize the interest rate for 2024-25, which is expected to stay above 8%, likely around 8.25%, similar to the previous year.
Stable Returns and Rising Claims
EPFO has consistently delivered stable returns to its subscribers. In 2023-24, the interest rate was 8.25%, the highest ever, with a total income of Rs 1.07 lakh crore and a principal amount of Rs 13 lakh crore. However, the organization has also seen a significant rise in claim settlements. Data reveals that in 2024-25, EPFO settled over 50.8 million claims, amounting to Rs 2.05 lakh crore, compared to 44.5 million claims worth Rs 1.82 lakh crore last year.
How EPFO Decides the Interest Rate
Before the CBT meeting, the Investment and Accounts Committee prepares a detailed report analyzing EPFO’s income and expenses. This report helps propose an interest rate that ensures sufficient funds for future financial needs. Despite solid returns on investments, the rise in claims has put pressure on EPFO’s finances.
What’s Next for Subscribers?
With over 65 million subscribers, EPFO continues to play a crucial role in securing employees’ futures. While the interest rate for 2024-25 is expected to remain around 8.25%, the final decision will be announced after the CBT meeting. Subscribers can expect a reliable and consistent return on their PF investments, making it a safe choice for long-term savings.