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The government has approved an 8.25% interest rate for EPF for 2024-25, allowing EPFO to credit interest to over seven crore subscribers. This rate remains unchanged from FY24.
The EPFO earlier proposed to retain the 8.25% interest rate — unchanged from FY24 — at its 237th meeting of the Central Board of Trustees held on February 28, 2025, which has now been approved by the finance ministry.
EPF Interest Rate 2024-25: The government has ratified the Employees’ Provident Fund (EPF) interest rate at 8.25 per cent for the financial year 2024-25, according to a PTI report. The move paves the way for the Employees’ Provident Fund Organisation (EPFO) to credit the annual interest into the accounts of over seven crore subscribers.
“The Ministry of Finance has given concurrence to 8.25 per cent rate of interest on the EPF for 2024-25 fiscal year and the labour ministry sent a communication regarding this to the EPFO on Thursday,” a labour ministry official told PTI.
The EPFO had earlier proposed to retain the 8.25% interest rate — unchanged from FY24 — at its 237th meeting of the Central Board of Trustees held on February 28, 2025, which was chaired by Union Labour and Employment Minister Mansukh Mandaviya. The proposal was subsequently sent to the Ministry of Finance for final approval.
The Finance Ministry has now given its concurrence, and a formal communication confirming the interest rate has been sent to EPFO, PTI has reported.
The ratification allows the retirement fund body to initiate the process of crediting the approved interest into the EPF accounts of its members, ensuring steady post-retirement returns. The EPF continues to offer relatively higher and stable returns compared to many fixed-income instruments.
Notably, in February 2024, the EPFO had increased the interest rate marginally to 8.25 per cent for 2023-24, from 8.15 per cent in 2022-23. In March 2022, EPFO had lowered the interest on EPF for 2021-22 to an over four-decade low of 8.1 per cent, from 8.5 per cent in 2020-21. The 8.10 per cent rate of interest on EPF for 2020-21 was the lowest since 1977-78, when it stood at 8 per cent.
Compared to many fixed-income instruments, EPF offers relatively higher and stable returns, ensuring steady growth on post-retirement savings.
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