Last Updated:
Last year, EPFO gave a 8.25 per cent interest for 2023-24 on a total principal amount of about Rs 13 lakh crore, marking its highest so far.
EPFO to decide rates for 2024-25 on PF deposits.
The Employees’ Provident Fund Organisation (EPFO) is expected to keep the interest rate on provident fund deposits around 8.25 per cent for 2024-25, according to a report by Economic Times. The Central Board of Trustees (CBT) will meet on February 28 to decide the rates. If the board goes for 8.25 per cent, it will be the same as announced the last year.
EPFO witnessed a good financial year for EPFO investments with higher returns and an increase in the subscriber base, according to the ET report. But it also witnessed higher claim settlements by members, leading to more outflow of the funds.
The decision will have a direct impact on over 65 million subscribers.
As per ET report citing official data, EPFO organization has processed over 5 crore claims amounting to Rs 2.05 lakh crore in 2024-25 so far as compared to 4.45 crore claims of Rs 1.82 lakh crore settled in 2023-24.
Finance Ministry Approval Is A Must
EPFO proposes the interest rate on PF deposits every year to the CBT. After the approval of the CBT, the approval of the finance ministry is required for a given rate before it is notified and credited into the accounts of EPFO subscribers, usually in the second half of the following year.
Last year, EPFO gave an 8.25 per cent interest for 2023-24 on a total principal amount of about Rs 13 lakh crore, marking its highest so far.
What Is CBT?
The EPFO’s act and schemes are administered by a tri-partite Board known as the Central Board of Trustees, Employees’ Provident Fund, consisting of representatives of Government (Both Central and State), Employers, and Employees.
The Board administers a contributory provident fund, a pension scheme, and an insurance scheme for the workforce engaged in the organized sector in India. It is one of the world’s largest organizations in terms of clientele and the volume of financial transactions undertaken by it.
