EPFO retains interest rate on PF deposits at 8.25% for 2024-25; move to benefit over 70 million EPFO subscribers

In a move that will benefit over 70 million of its subscribers, the Employees’ Provident Fund Organisation retained the interest rate on provident fund deposits at 8.25% for 2024-25, same as last year, on the back of higher income and better returns on EPFO investments.

ET had reported earlier that the retirement fund body could either retain the interest rate at last year's level or lower it marginally to enhance surplus.

Official data shows EPFO has processed over 50.8 million claims amounting to Rs 2.05 lakh crore in 2024-25 compared to 44.5 million claims worth Rs 1.82 lakh crore settled in 2023-24.


EPFO had given interest at the rate of 8.25% for 2023-24 on the income of Rs 1,07,000 crore, the highest ever, on a total principal amount of about Rs 13 lakh crores.

This was higher than 8.15% interest rate declared for 2022-23 on the income of Rs 91,151.66 crore on a principal of Rs 11.02 lakh crore.

The interest rate on PF deposits for any given year, proposed by EPFO and approved by CBT, has to be approved by the finance ministry before it is notified and credited into the accounts of EPFO subscribers, mostly in the second half of the following year.

CBT is the apex decision making body of the EPFO. It has representatives of employers, employees and state governments along with top officials of the labour ministry and EPFO.