Government Retains 8.25% Interest Rate on EPF for FY2024-25

The Indian government has officially maintained the interest rate on Employees' Provident Fund (EPF) deposits at 8.25% for the financial year 2024–25. This confirmation, following the Central Board of Trustees' earlier recommendation, ensures continued financial assurance and attractive returns.

Shivam Last updated on May 26th, 2025 03:40 pm

In a move aimed at ensuring steady and secure post-retirement earnings for millions of salaried employees, the Government of India has approved an 8.25% interest rate on Employees’ Provident Fund (EPF) deposits for the financial year 2024–25. The decision comes following a proposal made in the 237th meeting of the Central Board of Trustees of the Employees’ Provident Fund Organisation (EPFO) held earlier this year.

Why in News?

The Ministry of Finance has given its formal approval to retain the EPF interest rate at 8.25% for FY25, confirming the decision taken by the Ministry of Labour and Employment in February 2024. This impacts over 7 crore EPFO subscribers, making it a significant development in the sphere of retirement planning and social security.

Background

The Employees’ Provident Fund (EPF) is a mandatory retirement savings scheme for salaried employees in India.
It is administered by the Employees’ Provident Fund Organisation (EPFO) under the Ministry of Labour & Employment.
Both employee and employer contribute 12% of basic salary each towards the EPF account monthly.

Key Highlights

Interest Rate: Retained at 8.25% for FY25.
Approved By: Ministry of Finance, after recommendation from the EPFO’s Central Board of Trustees.
Meeting Reference: 237th meeting chaired by Union Labour Minister Mansukh Mandaviya.

Previous Year Rates

FY2023–24: 8.25%
FY2022–23: 8.15%
The current rate is comparatively higher than most fixed-income instruments like savings deposits, small savings schemes, and fixed deposits.

Objective

To ensure steady growth of post-retirement funds for salaried individuals.
To maintain investor confidence in EPF as a secure long-term savings vehicle.
To support social security through financial inclusivity and predictability.

Significance

Benefits over 7 crore active EPF subscribers.
Encourages formal employment and long-term savings discipline.
Provides tax-free interest and ensures capital protection under government regulation.
EPFO manages ₹20+ lakh crore corpus, making it one of the largest social security organisations in the world.