Authorities ratifies workers’ provident fund rate of interest at 8.25% for FY25

In comparison with many fixed-income devices, EPF provides comparatively greater and steady returns, making certain regular development on post-retirement financial savings. File
| Picture Credit score: The Hindu

The federal government has ratified the speed of curiosity on workers’ provident fund at 8.25% for FY25, enabling the retirement fund physique EPFO to deposit the annual curiosity accumulation within the post-retirement funds of over 7 crore subscribers.

EPFO, on February 28, had determined to retain the rate of interest of 8.25% on workers’ provident fund (EPF) deposits for the monetary 12 months 2024-25, equal to the speed supplied within the previous fiscal. The accredited fee of curiosity for 2024-25 was despatched for concurrence of the Ministry of Finance.

“The Ministry of Finance has given concurrence to an 8.25% fee of curiosity on the EPF for the 2024-25 fiscal 12 months, and the Labour Ministry despatched a communication relating to this to the EPFO on Thursday (Might 22, 2025),” a labour ministry official instructed PTI.

Now the curiosity quantity as per the speed ratified for FY25 will likely be credited into the accounts of over seven crore subscribers of EPFO.

The choice on rate of interest was taken on the 237th assembly 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 comparison with many fixed-income devices, EPF provides comparatively greater and steady returns, making certain regular development on post-retirement financial savings.

In February 2024, the EPFO had elevated the rate of interest marginally to eight.25% for 2023-24, from 8.15% in 2022-23.

In March 2022, EPFO had lowered the curiosity on EPF for 2021-22 to an over four-decade low of 8.1%, from 8.5% in 2020-21.

The 8.10% fee of curiosity on EPF for 2020-21 was the bottom since 1977-78, when it stood at 8%.