EPFO interest credit: 8.25% announced for 2024-25; process to finish this week, says Mandaviya

Labour minister Mansukh Mandaviya on Tuesday announced that the Employees’ Provident Fund Organisation (EPFO) will complete crediting 8.25% interest for 2024-25 into members’ accounts within this week. Every year, the EPFO credits interest into its members’ accounts after the central government ratifies the recommended rate. For the current financial year, government approval for the 8.25% rate came on 22 May 2025. Soon after, the EPFO began preparatory work and started updating annual accounts on the night of 6 June. “This year, the annual account updation had to be done for 13.88 lakh establishments having 33.56 crore member accounts, out of which till 8th July, interest has been credited in 32.39 crore member accounts of 13.86 lakh establishments,” Mandaviya said, quoted by PTI. “This translates into completion of annual accounts updation for 99.9% of the establishments and 96.51% of the member accounts,” the minister added. He noted that in the previous year (2023-24), interest crediting had only started in August and was completed by December. However, due to system optimisation, this year’s process has largely been completed within June itself. Mandaviya also said that the remaining accounts are expected to be updated within this week. The decision to retain the 8.25% interest rate for FY25, the same as last year, was made during the 237th meeting of EPFO’s central board of trustees held on 28 February in New Delhi, which was chaired by Mandaviya. The proposal was later sent to the ministry of finance for final approval. The EPF continues to offer relatively higher and more stable returns compared to other fixed-income instruments, helping ensure long-term growth in retirement savings.In February 2024, the EPFO marginally raised the interest rate on employees’ provident fund deposits for 2023-24 to 8.25%, up from 8.15% in 2022-23. Earlier, in March 2022, the organisation had reduced the rate for 2021-22 to 8.1%, the lowest in over four decades.compared to 8.5% in 2020-21. The 8.1 per cent rate marked the lowest since 1977-78, when the EPF interest stood at 8 per cent.