The government has given a big shock to more than 7 crore employees working in government departments, institutions and private companies of the country. The government has decided to maintain the interest rate on Employees' Provident Fund (EPF) at 8.25% for the financial year 2024-25. This decision is like a shock to more than 7 crore employees who were expecting a hike in the interest rate.
According to the Labour Ministry, the Finance Ministry has approved the interest rate on EPF at 8.25% and an official notification in this regard has been sent to EPFO. Now this interest rate will be officially applicable for 2024-25 and interest will be credited to the employees' accounts accordingly.
The government's decision was taken in the 237th meeting of EPFO held on February 28, 2024 in New Delhi under the chairmanship of Union Minister of Labour and Employment Mansukh Mandaviya. In this meeting, a proposal was approved to keep the interest rate unchanged at 8.25% for 2024-25.
No increase in interest rates will have a direct impact on the future savings of employees. Even if the inflation rate increases, the returns from safe investment schemes like EPF remain stable. This may make many investors rethink their financial plans.
The interest rate of 8.25% on EPF has not been reduced or increased. This has not provided any direct assurance to employees. However, this rate is considered better than many other safe investment instruments. However, employees still hold out hope for a possible improvement in interest rates every year.
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