The government has approved an interest rate of 8.25% on the Employees’ Provident Fund (EPF) for the financial year 2024-25 (FY25). With this, EPFO will now be able to deposit the yearly interest into the accounts of more than 7 crore account holders.
EPFO had already decided on this interest rate in its meeting held on 28 February 2025. This rate is the same as the interest rate for last year (2023-24). But to apply it, the Finance Ministry’s approval was needed, which has now been given.
Finance Ministry Gives Green Signal
An official from the Ministry of Labor said that after getting approval from the Finance Ministry, the Labor Ministry has sent a letter to EPFO. Now, the interest amount will be added to all EPF accounts soon at the fixed rate.
This decision was taken during the 237th meeting of the Central Board of Trustees of EPFO. The meeting was led by Union Labor and Employment Minister Mansukh Mandaviya.
EPF Interest Rate Changes in Recent Years
- 2023-24: 8.25% (slight increase)
- 2022-23: 8.15% (slight decrease)
- 2021-22: 8.10% (lowest in 40 years)
- 2020-21: 8.50% (good increase)
- 1977-78: 8% (lowest ever)
Better Returns for Workers
The interest earned on EPF is higher and more stable than that of many other fixed-income options. It helps workers save more for retirement. This decision will give relief to crores of employees across the country. It will keep their retirement savings safe and profitable.