EPFO Interest Rate: Good news! Private employees will get 8.25% interest on EPF deposits in FY25
EPFO Interest Rate: On February 28, EPFO had decided to maintain the interest rate of EPF at 8.25 percent. It was sent to the Finance Ministry for approval. It is said that the Finance Ministry has approved this proposal.
EPFO Interest Rate: There is good news for crores of people doing private jobs. They will get 8.25 percent interest on their money deposited in EPF. The central government has approved the proposal of 8.25 percent interest rate on EPF. This interest will be for the financial year 2024-25. It is said that more than 7 crore subscribers of EPF will benefit from this. However, this is equal to the interest rate of a year ago.
Finance Ministry approved
EPFO had decided to maintain the interest rate of EPF at 8.25 percent on 28 February. It was sent to the Finance Ministry for approval. It is said that the Finance Ministry has approved this proposal. A Labor Ministry official said, “The Finance Ministry has approved the proposal of 8.25 percent interest rate for the last financial year. This will be for the fiscal year 2024-25. The Labor Ministry informed EPFO about this decision on May 22.”
EPFO benefits 7 crore subscribers
After this decision of the government, the way has been cleared for the interest money to come into the EPF accounts of more than 7 crore subscribers of EPF. On 28 February, the Central Board of Trustees (CBT) of EPFO was meeting. In this meeting led by Union Labor Minister Mansukh Mandaviya, a proposal to maintain the interest rate at 8.25 percent for FY25 was decided.
Decision to increase interest in February 2024
EPFO had decided to increase the interest rate on EPF deposits in February 2024. It increased it from 8.15 percent to 8.25 percent. This increase was made for the deposits of financial year 2023-24. The interest rate in the financial year 2022-23 was 8.15 percent. In March 2022, EPFO reduced the interest rate from 8.5 percent to 8.1 percent. This was the lowest interest rate in more than 4 decades.
Meaning of EPF Account
People working in the private sector come under the EPFO scheme. In this, every month 12 percent of the employee’s salary (basic plus DA) is deposited in his EPF account. The employer deposits the same amount in the employee’s EPF account every month. EPF account has two parts – EPF and EPS. 8.33 percent of the employer’s contribution is deposited in EPS every month. When the employee retires, he gets the entire money deposited in the EPF account in lump sum. He gets pension every month on the money deposited in EPF.
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