Centre gives nod for 8.25% EPF interest rate on Employees’ Provident Fund for FY25

New Delhi, 24 May 2025: The Central Government grants approval for an 8.25% interest rate on the Employees' Provident Fund (EPF) for the financial year 2024-25, providing a significant boost to the post-retirement savings of over 7 crore subscribers.

The Ministry of Labour has allowed the Employees' Provident Fund Organisation (EPFO) to credit the interest accumulation into the accounts of its subscribers.

In February 2024, the Employees' Provident Fund Organisation (EPFO) decided to maintain the interest rate on EPF deposits at 8.25%. This rate is the same as that offered for the previous financial year, 2023-24.

The decision required approval from the Ministry of Finance, which has now granted its concurrence. The Ministry of Labour sent an official communication to the EPFO on Thursday, confirming the ratification.

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An interest rate of 8.25% will be credited to the provident fund accounts of over 70 million active Employees' Provident Fund (EPF) subscribers across the country. The decision was made during the 237th meeting of the EPFO's Central Board of Trustees, chaired by Union Minister for Labour and Employment Mansukh Mandaviya, in New Delhi on February 28, 2024.

The interest rate of 8.25% for FY25 gives a relatively high return compared to many fixed-income investment options available to the general public and provides a continued increase in EPF returns in recent years.

EPFO in February 2024 has raised the interest rate marginally from 8.15% in FY 24 to 8.25%, following a slight increase from 8.1% in FY 23. Meanwhile, this current rate is ready to offer stability to investors seeking long-term savings.

 

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