Notwithstanding the turbulence in stock markets, subscribers of the Employees’ Provident Fund Organisation will continue to get a stable 8.25% interest rate on their provident fund contributions in FY25, which is the same as FY24. There is also some expectation that the return could be hiked next year if market volatilities ease. The decision to keep the EPF rate unchanged was taken by the Central Board of Trustees of the EPFO on Friday. BT had reported on February 27 that the EPFO is likely to give an interest rate of about 8.2% to 8.25% for this fiscal as well. The interest rate for 2024-25 would be officially notified by the Government of India, following which EPFO would credit the rate of interest into the subscribers’ accounts. “Compared to many other fixed-income instruments, the Employees' Provident Fund (EPF) offers relatively high and stable returns, ensuring steady growth of savings. The interest earned on EPF deposits is tax-free (up to a specified limit), making it a highly attractive investment option for salaried individuals. This reflects strong confidence in the credit profile of EPFO’s investments and its ability to deliver competitive returns to its members,” said an official release by the Ministry of Labour and Employment after the meeting. The EPFO is understood to be left with a surplus of Rs 4,550 crore and trade union leaders are understood to have called for increasing the rate of return to 8.3%. The demand was also raised by the Trade Union Coordination Centre whose General Secretary SP Tiwari is a member of the Central Board of Trustees of the EPFO. “TUCC demanded to raise this rate of interest to 8.30% as after paying this interest also, there will be a surplus of Rs. 4,550 crore… It is expected to increase in the next year, as it is assumed that interest yield in Government securities will be higher as per financial assumption,” it said in a statement after the CBT meeting on Friday. “The EPFO has a surplus and its income has also increased. It is hoped that the interest rate will be increased going forward and the labour ministry has also promised to look into this demand in the coming months,” said Harbhajan Singh Siddhu, General Secretary, Hind Mazdoor Sabha and member of the CBT said. But to overcome the financial turbulence in the financial markets, it was safely agreed by all the stakeholders to keep it constant at 8.25% for this year 24-25 and if the availability will be there, it may be enhanced in the next financial year, it further noted. EPFO officials are also understood to have pointed out that the retirement fund manager may lose about Rs 1,500 crore due to the decision of the National Company Law Tribunal with regard to IL&FS and Reliance Capital. They also pointed out that the repo rate may be further decreased and the earnings from the exchange-traded funds could be lower in 2025-26 from the current Rs 21,000 crore. As per sources, the EPFO’s total holdings were about Rs 17.13 lakh crore as on January 31, 2025, of which 66.35% is invested in government securities and 23.06% in debt instruments.