Centre approves 8.25 per cent EPF interest rate for FY25

By FnF Correspondent | PUBLISHED: 24, May 2025, 17:18 pm IST | UPDATED: 24, May 2025, 17:18 pm IST

New Delhi: The government has officially ratified 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 decision, made by the Ministry of Labour and Employment, allows the Employees' Provident Fund Organisation (EPFO) to proceed with crediting the interest accumulation into the accounts of its subscribers.

Earlier, in February 2024, the EPFO had decided to retain the 8.25% interest rate on EPF deposits, mirroring the rate offered for the previous financial year, 2023-24. This decision was subject to approval from the Ministry of Finance, which has now provided its concurrence. The official communication from the Ministry of Labour, confirming the ratification, was sent to the EPFO on Thursday.

This 8.25% interest rate will be credited into the provident fund accounts of the more than 7 crore active EPF subscribers across the country. The decision was made following the 237th meeting of the EPFO's Central Board of Trustees, which was chaired by Union Minister for Labour & Employment, Mansukh Mandaviya, in New Delhi on February 28, 2024.

The interest rate of 8.25% for FY25 represents a stable and relatively high return compared to many fixed-income investment options available to the general public. EPF has long been considered a reliable savings vehicle, ensuring steady growth of retirement funds for employees across various sectors.

This interest rate also marks a continued increase in EPF returns in recent years. In February 2024, the EPFO raised the interest rate marginally from 8.15% in FY2023-24 to 8.25%, following a slight increase from 8.1% in FY2022-23. In March 2022, the EPFO lowered the interest rate to 8.1%, the lowest in four decades, sparking concerns among subscribers. The current rate offers stability to investors seeking a safe and consistent avenue for long-term savings.

The EPF interest rate is a crucial indicator for retirement savings, and its regular review ensures that it continues to provide competitive returns, particularly in a low-interest-rate environment. The ratified 8.25% rate for FY25 is expected to maintain the confidence of millions of salaried workers, allowing them to benefit from higher interest accumulation on their provident fund deposits.

As the EPFO progresses with the crediting process, it reaffirms its commitment to safeguarding the retirement savings of Indian workers while offering a secure and steady return on their investments.

(PTI inputs)