8.25% interest on PF this year will also get ₹ 8,250 for more than 7 crore employees on ₹ 1 lakh deposits, Finance Ministry approval

For FY 2024-25, 8.25% interest will be available on the amount deposited in PF account. The Finance Ministry has approved the Employees Provident Fund Organization (EPFO) for this. Now the amount of interest will be transferred to the PF account of more than 7 crore employees of the country.

Earlier, the Central Board of Trustee of EPFO ​​decided to maintain 8.25% interest rate in the meeting on February 28. Which is equal to the rate given in the last financial year. It was then sent to the Finance Ministry for approval.

8,250 rupees will get interest on 1 lakh According to 8.25% interest rate, if your EPF account is deposited 1 lakh rupees, then it will get an interest of Rs 8,250 in a year. At the same time, PF account has a total deposit of Rs 5 lakh in PF account from 1 April 2024 (opening balance for FY 2024-25). In such a situation, you will get Rs 41,250 as interest on 5 lakhs according to the interest rate of 8.25%.

PF account contains 12% of the basic salary plus da Under the EPFO ​​Act, 12% of the employee’s basic salary plus da goes to PF account. At the same time, the company also contributes 12% of the employee’s basic salary plus DA. Out of the company’s 12% of the contribution, 3.67% goes to PF account and the remaining 8.33% goes to the pension scheme. At the same time, all the money of the employee’s contribution goes to the PF account.

In 1952, 3% of interest started In 1952, the interest rate on PF was only 3%. However, after that it increased. It first reached over 6% in 1972. In 1984 it first reached above 10%. The best time for PF holders was from 1989 to 1999.

During this time 12% interest was received on PF. After this, the interest rate started declining. After 1999, the interest rate never reached close to 10%. It has been below 9.50% since 2001. It has been 8.50% or less for the last seven years.

Interest rate is fixed at the end of financial year The Finance Investment and Audit Committee meets first for the decision of interest rate in PF. It gives accounts about the money deposited in this financial year. This is followed by a CBT meeting. Following the CBT’s decision, the Ministry of Finance implements the interest rate after consent. The decision at the interest rate is at the end of the financial year.

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