New Delhi, May 24 – The Centre has ratified an 8.25 per cent interest rate on Employees’ Provident Fund (EPF) deposits for the financial year 2024-25, allowing the Employees’ Provident Fund Organisation (EPFO) to begin crediting interest to the retirement accounts of more than seven crore subscribers.
The rate, unchanged from the previous fiscal, was officially approved by the Ministry of Finance following its recommendation by the EPFO’s Central Board of Trustees earlier this year.
“Ministry of Finance has given concurrence to 8.25 per cent rate of interest on the EPF for 2024-25 fiscal year and labour ministry sent a communication regarding this to the EPFO on Thursday,” a Labour Ministry official told PTI.
The decision was initially taken during the 237th meeting of the Central Board of Trustees held on February 28, chaired by Union Labour & Employment Minister Mansukh Mandaviya.
The EPF continues to offer comparatively higher and stable returns than many other fixed-income investment avenues, making it a preferred option for long-term post-retirement financial planning.
The 8.25 per cent rate marks a continuation of last year’s figure, which itself was a marginal increase from 8.15 per cent in 2022-23. Prior to that, the interest rate had dipped to a four-decade low of 8.10 per cent in 2021-22—its lowest since 1977-78, when it stood at 8 per cent.
With this ratification, EPFO can now begin distributing the annual interest for FY25 across subscriber accounts, ensuring continuity in retirement savings growth for its vast membership.
