In a big relief for salaried employees, the Central Government has approved an 8.25% interest rate on Employees' Provident Fund (EPF) for the financial year 2024-25. This decision, based on EPFO’s board meeting held in February, is set to benefit over 7 crore EPF subscribers across the country. The approved rate is the same as last year’s, reinforcing investor confidence in the EPF scheme.
The Central Board of Trustees of EPFO made the decision during its 237th meeting held on 28 February 2025, chaired by Union Labour and Employment Minister Mansukh Mandaviya. After this resolution, the proposal was sent to the Ministry of Finance, which has now given its official approval.
A senior Labour Ministry official confirmed to PTI that the notification has been issued to EPFO, ensuring timely interest credit for members during the fiscal year.
| Financial Year | Interest Rate |
|---|---|
| 2024-25 | 8.25% |
| 2023-24 | 8.25% |
| 2022-23 | 8.15% |
| 2021-22 | 8.10% (Lowest in 40 years) |
| 2020-21 | 8.50% |
EPFO had slashed the interest rate to 8.10% in FY 2021-22, marking a four-decade low. However, in the past two years, the interest rate has shown stability and slight growth, boosting investor morale.
Employees’ Provident Fund (EPF) is a government-backed retirement savings scheme for salaried employees in India’s organized sector. Both employees and employers contribute monthly to the fund, which accumulates with compound interest.
Key Benefits:
Retirement Corpus Creation
Tax Benefits under Section 80C
Partial Withdrawal Facility for emergencies
Safe, Government-backed Returns
The interest rate is declared annually by the EPFO, and any approved interest is credited to subscribers' EPF accounts at the end of the financial year.
The 8.25% EPF interest rate is applicable on contributions made between 1 April 2024 and 31 March 2025. Interest is calculated monthly but credited annually, usually by the end of the next fiscal year.
For over 7 crore employees, this news brings relief and clarity regarding their retirement savings. With market volatility affecting many other investment avenues, EPF continues to offer stable and secure returns—making it a preferred long-term savings option.
Suppose your EPF account balance is ₹5,00,000 on average during the year.
At 8.25% interest, you would earn:
₹41,250 as annual interest for FY 2024-25.
This interest is tax-free (if withdrawn after 5 years of continuous service) and compounds over time, boosting your retirement corpus significantly.
The government's approval of 8.25% EPF interest rate for 2024-25 reaffirms the Employees’ Provident Fund as a reliable and rewarding savings scheme for India’s working population. For investors looking for secure, tax-friendly, and consistent returns, EPF remains one of the best options available.
