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
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 this will benefit more than 7 crore subscribers of EPF. However, this is equal to the interest rate of a year ago.
Finance Ministry approved
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. 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.”
7 crore subscribers of EPFO benefit
After this decision of the government, the way has been cleared for the interest money to come in the EPF account of more than 7 crore subscribers of EPF. On February 28, a meeting of the Central Board of Trustees (CBT) of EPFO was held. In this meeting led by Union Labor Minister Mansukh Mandaviya, a decision was taken on the proposal to maintain the interest rate at 8.25 percent for FY25.
Decision to increase interest in February 2024
EPFO had decided to increase the interest rate on EPF deposits in February 2024. It had increased it from 8.15 per cent to 8.25 per cent. This increase was made for the deposits of the financial year 2023-24. The interest rate was 8.15 per cent in the financial year 2022-23. In March 2022, EPFO reduced the interest rate from 8.5 per cent to 8.1 per cent. 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 per cent 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 per cent of the employer’s contribution is deposited in EPS every month. When an employee retires, he gets the entire amount deposited in his EPF account in lump sum. He gets pension every month on the money deposited in EPF.
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