Provident Fund Update: If you’re a salaried employee contributing a part of your earnings to the Employees’ Provident Fund (EPF), here’s some great news! The government has approved an 8.25% interest rate for EPF for the financial year 2024-25, keeping it unchanged from last year. This means your hard-earned savings will continue to grow at the same attractive rate, ensuring financial security for your future.
EPFO’s Key Decision – Stability in Interest Rates
In a crucial meeting held on February 28, 2024, the EPFO’s Central Board of Trustees (CBT), chaired by Union Labour Minister Shri Bhupender Yadav, decided to retain the 8.25% interest rate for EPF subscribers. After receiving the Finance Ministry’s approval, this move will benefit over 7 crore active EPF members across India.
ICICI Bank FD Offers Attractive Returns
Who Benefits the Most?
- 7 crore+ employees with active PF accounts.
- 14.6 lakh new members joined EPFO in March 2024 alone, including 7.54 lakh first-time contributors, reflecting growing employment opportunities and financial awareness.
- A 2.03% monthly increase in new enrollments compared to February 2024.
EPF Interest Rates Over the Years – A Quick Look
- 2020-21: 8.5% (Highest in recent years)
- 2021-22: 8.1% (Lowest since 1977-78)
- 2022-23: 8.15% (Slight increase)
- 2023-24 & 2024-25: 8.25% (Stable returns for subscribers)
Why EPF Matters for Your Financial Future?
- Mandatory Savings: 12% of your (Basic + DA) salary goes into EPF, matched equally by your employer.
- Retirement Security: At retirement, you receive a lump sum from EPF + monthly pension via EPS (Employees’ Pension Scheme).
- Tax Benefits: Contributions are tax-deductible under Section 80C, and withdrawals are tax-free after 5 years.