EPFO confirms 8.25% interest for 2024–25; over 96.5% of member accounts credited and remaining updates to complete within the week, says Mandaviya
The Employees Provident Fund Organisation (EPFO) will end this week the process of crediting an 8.25% interest rate for the financial year 202425. Labour Minister Mansukh Mandaviya announced the development on Tuesday, stating that the exercise is complete in more than 96% of the members’ accounts.
The government approved the 8.25% rate on 22 May 2025. EPFO started updating the accounts as early as the night of 6 June. On 8 July, interest was credited to 32.39 crore members, covering 33.56 crore, and applied to 13.86 lakh out of 13.88 lakh eligible establishments. Mandaviya noted that the crediting procedure is currently running much faster than last year. The interest update in 2023/24 commenced in August and finished in December.
Interest Rate Approved After Trustee Meeting
There is no change in the 8.25% interest rate in FY 2024 25 as compared to the year before. The rate was proposed at the 237th meeting of the Central Board of Trustees EPFO, which was held on 28 February 2025 in New Delhi. The session, chaired by Mandaviya, recommended the proposal to the Ministry of Finance for final clearance.
This is the case because EPFO has been engaging in uniform interest crediting, which makes it an effective savings instrument for salaried workers. The fund typically yields a higher income compared to most fixed-income assets, thereby aiding in building long-term retirement savings for the account holder.
Although EPFO modestly increased the 2023/24 rate in February 2024 to 8.25% at the time of writing, compared to 8.15% in the previous year, 2022/23, the recomposed interest rate had reverted to the historically low growth of 7.1% in the 2021/22 period. In contrast, it stood at a respectable 8.5% in the 202021 period. In 2021/22, the rate decreased to 8.1%, the lowest since 1977/78.
Retirement Planning Backed by Timely Updates
The EPF scheme continues to play a significant role in the retirement planning of millions of individuals in India. Interest is credited at the right time, and the government supervises the system, hence improving confidence in the system. Those who have not updated their accounts yet should be patient in terms of having their interests credited to their accounts, as over 96% of the members’ accounts have already been updated.
The EPFO is still standardising its systems to enable faster processing and provide timely updates to its growing membership.
