Govt Approves 8.25% Interest Rate On PF Deposits For FY25

The decision to retain the 8.25 per cent rate was initially taken in February by the Employees’ Provident Fund Organisation (EPFO) during a meeting of its Central Board of Trustees in New Delhi

The Ministry of Finance has now formally approved the recommendation, and the Labour Ministry has issued a notification to the EPFO

Source : ABPLIVE AI

The central government has ratified the interest rate on employees' provident fund (EPF) deposits at 8.25 per cent for the financial year 2024–25, maintaining the same rate as the previous fiscal year. The decision to retain the 8.25 per cent rate was initially taken in February by the Employees’ Provident Fund Organisation (EPFO) during a meeting of its Central Board of Trustees in New Delhi.

The Ministry of Finance has now formally approved the recommendation, and the Labour Ministry has issued a notification to the EPFO, according to a IANS report citing reliable sources.

With the interest rate now officially ratified, the returns for FY25 will soon be credited to the accounts of EPF subscribers. The EPFO had previously revised the interest rate upward for FY24 to 8.25 per cent, up from 8.15 per cent in FY23, benefiting its over 7 crore members.

Growth In EPFO Membership

Alongside the interest rate announcement, the EPFO’s latest payroll data highlights strong growth in new membership. In March 2025, EPFO added 14.58 lakh net members, marking a 1.15 per cent increase compared to March 2024. Of these, approximately 7.54 lakh were new subscribers, a 2.03 per cent rise from February 2025 and a 0.98 per cent year-on-year increase from March 2024.

The age group of 18–25 years continues to drive the majority of new enrolments. In March alone, 4.45 lakh individuals in this demographic joined the EPF scheme, constituting 58.94 per cent of all new subscribers for the month. Furthermore, the net payroll addition for this age group reached approximately 6.68 lakh, reflecting a 6.49 per cent increase over the same period last year.

According to the Labour Ministry, the continued rise in EPFO membership is a result of expanding employment opportunities, greater awareness of social security benefits, and sustained outreach initiatives by the organisation.