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The government has approved an 8.25% interest rate on EPF deposits for FY 2024-25, the highest in four years. For the financial year 2023-24, the EPFO had offered an interest rate of 8.15%, which was a slight increase from 8.10% in 2022-23.
The central government has ratified the interest rate of 8.25 percent on Employeesā Provident Fund (EPF) deposits for the financial year 2024ā25. This will allow the Employeesā Provident Fund Organisation (EPFO) to begin crediting the annual interest to over seven crore subscribers, officials confirmed.
The Labour Ministry received formal approval from the Ministry of Finance this week, after EPFOās central board of trustees had recommended retaining the existing 8.25 percent rate in its 237th meeting held on February 28. The meeting was chaired by Union Labour and Employment Minister Mansukh Mandaviya in New Delhi.
The ratified rate matches last yearās interest and continues to offer a competitive return when compared to other fixed-income instruments. The move is expected to ensure steady post-retirement savings for millions of salaried employees across India.
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EPF interest rate trend over the years
In 2023-24, EPFO had marginally raised the interest rate to 8.25 percent from 8.15 percent in 2022-23. Prior to that, the rate had dipped to 8.10 percent for 2021-22, marking the lowest level since 1977-78. In 2020-21, the rate was 8.5 percent, which was reduced to 8.1 percent in the following year amid lower returns from investments.
The consistent performance and fiscal prudence of the EPFOās investment strategy have allowed it to maintain and now retain a relatively high rate of return, reflecting confidence in its portfolio, which includes a mix of debt and equity assets.
EPFO sees steady growth in membership
The EPFO added 1.46 million net subscribers in March 2025, according to provisional data released this week. Of these, 754,000 were new enrollments, while the rest included members who returned after a short break or switched employers. This marks a 1.15 percent rise in net additions compared to the previous month, and a 0.98 percent increase year-on-year.
The growth indicates stronger formal sector employment trends and increasing awareness about retirement benefits. EPFO officials credit the rise to expanded outreach and streamlined digital services.
Big boost to advance claim process
In a major pro-subscriber reform, EPFO announced in March 2025 that the limit for auto-settlement of advance claims had been raised from ā¹1 lakh to ā¹5 lakh. This enhancement, aimed at improving ease of access, is expected to benefit nearly 7.5 crore members.
The auto-settlement mechanism was first launched in April 2020 for medical emergencies. Over time, the scope has expanded, and in May 2024, the previous limit was increased from ā¹50,000 to ā¹1 lakh. With the new ā¹5 lakh limit, subscribers can now get faster access to funds in times of need.
EPFO has also extended the auto-settlement feature to claims related to education, marriage, and housing, in addition to illness and hospitalisation. Nearly 95 percent of all advance claims are now settled through the automated system, most within just three days, an improvement from the earlier average of ten days.
