Employees’ provident fund interest rate retained at 8.25% for FY25, over 7 crore subscribers to benefit

The government has ratified the Employees’ Provident Fund (EPF) interest rate at 8.25% for the financial year 2024-25, paving the way for the Employees’ Provident Fund Organisation (EPFO) to credit the annual returns into the accounts of over seven crore subscribers.

The interest rate, proposed during the 237th meeting of EPFO’s Central Board of Trustees on February 28 and chaired by Labour Minister Mansukh Mandaviya, had been awaiting final approval from the Ministry of Finance. A labour ministry official told PTI that the finance ministry gave its concurrence this week.

This marks the second consecutive year that the EPF interest rate has been maintained at 8.25%, offering one of the highest returns among fixed-income instruments in the country. EPFO had marginally raised the rate from 8.15% in 2022-23. The ratified rate ensures continuity and predictability for long-term savers, particularly in an environment of fluctuating market interest rates.

The decision on interest rate was taken at the 237th meeting of the central board of trustees of the EPFO chaired by Union Minister for Labour & Employment Mansukh Mandaviya in New Delhi on February 28.

In February 2024, the EPFO had increased the interest rate marginally to 8.25 per cent for 2023-24, from 8.15 per cent in 2022-23. In March 2022, EPFO had lowered the interest on EPF for 2021-22 to an over four-decade low of 8.1 per cent, from 8.5 per cent in 2020-21. The 8.10 per cent rate of interest on EPF for 2020-21 was the lowest since 1977-78, when it stood at 8 per cent.

(With inputs from PTI)