The labour ministry has directed the Employees’ Provident Fund Organisation (EPFO) to begin crediting the interest — unchanged from FY24 — to subscribers’ accounts, following approval from the finance ministry.
EPF offers relatively high and stable returns compared to other fixed-income instruments, ensuring steady growth of savings for its subscribers. Besides, the interest earned on EPF deposits is tax-free up to a specified limit, making it a highly attractive investment option for salaried individuals. The central board of trustees of EPFO had proposed retaining the 8.25% rate for FY25 at its 237th meeting in February. The labour ministry then sent it to the finance ministry for final approval.
The EPFO had given an interest of 8.25% for FY24 on an income of Rs 1.07 lakh, which was the highest yet, on a total principal amount of about Rs 13 lakh crore.
