There’s good news for crores of people working in the private sector. They will now earn 8.25% interest on the money deposited in their Employees’ Provident Fund (EPF) accounts.
The central government has approved this interest rate for the financial year 2024-25.
More than 7 crore EPF subscribers are expected to benefit from this decision. Notably, this interest rate remains the same as last year.
Finance Ministry Gave the Final Approval
On February 28, 2024, EPFO proposed to keep the EPF interest rate at 8.25%. This proposal was sent to the Finance Ministry for approval.
A senior official from the Labour Ministry confirmed that the Finance Ministry has now approved this proposal. The Labour Ministry shared this decision with EPFO on May 22, 2025.
Over 7 Crore Subscribers to Get Interest Money
With this approval, EPFO is now set to credit interest money into the accounts of more than 7 crore EPF members.
The Central Board of Trustees (CBT) of EPFO, headed by Union Labour Minister Mansukh Mandaviya, had recommended keeping the interest rate at 8.25% during its meeting on February 28.
Interest Rate Increased in February 2024
EPFO had increased the interest rate on EPF deposits in February 2024, raising it from 8.15% to 8.25% for the financial year 2023-24.
In the previous year, i.e., 2022-23, the interest rate was 8.15%. Before that, in March 2022, EPFO had reduced the interest rate to 8.1%, which was the lowest in over 40 years.
What is an EPF Account?
EPF accounts are for people working in the private sector under the EPFO scheme. Every month, 12% of an employee’s salary (basic + DA) is contributed to their EPF account.
The employer also contributes an equal amount. The EPF account has two parts – EPF and EPS (Employees’ Pension Scheme). Out of the employer’s share, 8.33% goes to EPS.
When the employee retires, they receive the full amount saved in their EPF account in a lump sum, while monthly pension is paid from the EPS portion.
