Good News for Retirees: EPF Interest Rate Remains at 8.25% for FY25
EPF Interest Rate Stays Steady at 8.25% for FY25
The government has officially confirmed the interest rate on employees’ provident fund (EPF) deposits for the financial year 2024-25, keeping it at 8.25%. This means over 7 crore EPFO subscribers will continue to earn this rate on their retirement savings.
EPFO’s Decision and Government Approval
The Employees’ Provident Fund Organisation (EPFO) had initially decided to retain the 8.25% interest rate back in February. This decision was then sent to the Ministry of Finance for final approval. The Labour Ministry officially announced the government’s concurrence with the rate on Thursday, May 22, 2025.
Good News for EPF Subscribers
The interest amount calculated at 8.25% for FY25 will be credited to the EPFO accounts of all subscribers shortly. This provides a sense of stability and predictability for those planning for their retirement.
Steady Returns Compared to Other Investments
The EPF consistently offers relatively higher and stable returns compared to many traditional fixed-income instruments. This makes it a reliable option for individuals looking for a safe and steady growth of their retirement savings.
A Look Back at Interest Rate Trends
The EPFO had increased the interest rate to 8.25% for the previous fiscal year (2023-24), up from 8.15% in 2022-23. However, in 2021-22, the rate was lowered to 8.1%, a four-decade low, before being increased again in the following years.
