EPFO Board to Meet on February 28: Interest Rate Decision Expected

The Employees’ Provident Fund Organisation (EPFO) will hold its Central Board of Trustees (CBT) meeting on February 28 to decide the interest rate for the financial year 2024-25. According to a report, the rate is likely to stay around 8.25%.

EPF Interest Rate Trend

EPFO increased the interest rate to 8.25% for FY24, the highest in 3 years. In the previous year (FY23), it was 8.15%, slightly up from 8.10% in FY22.

The lowest rate in recent times was 8.10% in 2021-22, the lowest since 1977-78, when it stood at 8%. Over the last decade, EPF interest rates have varied, with the highest being 9.50% in 2010-11. Between 2019 and 2021, it remained steady at 8.50% before dropping in FY22.

EPF Interest Rate History (Selected Years)

How EPF Interest Rate Is Decided

EPFO proposes the interest rate, which the CBT then reviews. However, the final approval comes from the finance ministry before it is officially announced and credited to members’ accounts.

How EPF Interest Is Calculated

• EPF interest is calculated every month but is credited at the end of the financial year.
• If an account remains inactive for 36 months (no contributions), it becomes dormant and stops earning interest.

What’s Next?

The final decision will depend on the finance ministry’s approval after the CBT meeting. If the proposed 8.25% rate is approved, it will remain unchanged from last year.

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