Key Highlights
- The previous hike in EPF interest rate to 8.25% was announced in 2024 for the financial year 2023-24 from 8.15% in 2022-23.
- The EPFO’s investment returns are linked to the yield on government securities and equity returns.
- The decision to retain the interest rate was taken as it was felt there could be volatility in financial markets.
- By keeping the interest rate at 8.25%, the retirement fund body is estimated to face a loss of Rs 650 crore, a CBT member said, adding that it would be adjusted against previous year’s surplus of Rs 5,300 crore.
- The Ministry of Labour and Employment will now send the interest rate recommendation of 8.25 per cent for 2024-25 to the Ministry of Finance for ratification.
