Mon May 26 10:40:00 UTC 2025: ## Government Approves 8.25% Interest Rate for EPF, Benefiting 7 Crore Private Sector Employees

**New Delhi:** The central government has approved an 8.25% annual interest rate on Employee Provident Fund (EPF) deposits for the fiscal year 2025, providing a significant boost to over 7 crore private sector employees. This decision, announced on Saturday, ensures their PF savings will grow at a steady rate.

The Employees’ Provident Fund Organisation (EPFO) had initially decided to maintain the 8.25% interest rate on EPF deposits for the financial year 2024-25 on February 28th, mirroring the rate offered in the previous fiscal year. This recommendation was then sent to the Ministry of Finance for its approval, which has now been granted.

“The Ministry of Finance has approved the 8.25 percent interest rate on EPF for FY24-25, and the Labour Ministry sent a letter to the EPFO in this regard on Thursday,” a Labour Ministry official told PTI.

The approved interest amount will soon be credited to the accounts of over 7 crore EPFO members.

The decision on the interest rate was finalized during the 237th meeting of the Central Board of Trustees of EPFO, chaired by Union Minister for Labour & Employment, Mansukh Mandaviya, in New Delhi on February 28th.

EPF continues to offer a higher and more stable return compared to many other fixed-income instruments, providing a reliable avenue for retirement savings. In February 2024, the EPFO had slightly increased the interest rate for 2023-24 to 8.25%, up from 8.15% in 2022-23.

Prior to this increase, in March 2022, the EPFO had reduced the interest rate on EPF for 2021-22 to 8.1%, the lowest in over four decades, down from 8.5% in 2020-21. The 8.10% interest rate for FY 2020-21 was the lowest since 1977-78, when it stood at 8 percent.

The EPFO determines the interest rate for employees each year and then sends it to the Ministry of Finance for approval. The Finance Ministry can approve the proposed rate if it finds it appropriate. However, if the Finance Ministry sees any room for changes, it can approve a different rate after discussions. The PF interest rate is determined every financial year.

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