New Delhi, May 24: The government of India has ratified an interest rate of 8.25% on Employees’ Provident Fund (EPF) deposits for the financial year 2024–25, according to an official announcement on Saturday.
The rate, which was earlier recommended by the Central Board of Trustees (CBT) of the Employees’ Provident Fund Organisation (EPFO), is set to benefit over 7 crore salaried employees across India. It matches the interest rate offered for the previous fiscal year 2023–24.
In 2023–24, the 8.25% interest rate was backed by a record income of ₹1.07 lakh crore on a total corpus of ₹13 lakh crore. In contrast, the 2022–23 interest rate stood at 8.15%, declared on an income of ₹91,151.66 crore from a corpus of ₹11.02 lakh crore.
The EPFO also reported a significant operational milestone in the current fiscal year, with a record 2.16 crore auto-claim settlements as of March 6, 2025. This marks a substantial jump from 89.52 lakh auto-claims processed in 2023–24.
The EPF interest rate is proposed annually by the CBT, comprising representatives from employers, employees, state governments, and officials from the Ministry of Labour. The recommendation requires final approval from the Ministry of Finance before it is notified and credited to subscribers, usually in the second half of the financial year.
Over the past decade, EPF rates have tracked broader economic trends. For instance, the interest rate was 8.65% in 2018–19, reflecting a relatively stronger economic environment at the time.
