EPFO interest rate maintained at 8.25%

NEW DELHI: The interest rate on Employees Provident Fund Organisation (EPFO) deposits for the financial year 2024-25 has been maintained at 8.25%. This is the rate that came into effect in February 2024. The decision was taken at the EPFO Central Board of Trustees meeting chaired by Labour Minister Mansukh Mandaviya. It will come into effect after receiving the approval of the Finance Ministry. More than seven crore people will benefit.

The interest rate, which was 8.5 percent in 2019-20 and 2020-21, was reduced to 8.1 percent in 2021-22, the lowest rate in four decades, following the economic crisis during the Covid period. It was increased to 8.15% in 2022-23. That was increased to 8.25% last February.

EPFO informed the meeting that 72% of the applications for higher pensions as per the Supreme Court verdict have been processed. A legal mechanism will be implemented to resolve the cases of those having arrears to deposit compensation at the rate of one percent.

Even if there is a gap of up to two months when changing institutions of employment, it will be considered as continuous service.