EPFO to fulfill process of crediting interest for FY25 this week

• 09 Jul 2025
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Mr. Mansukh Mandaviya, Minister of Labour and Employment of India, has stated that the Employees’ Provident Fund Organisation (EPFO) will fulfill crediting 8.25% interest for FY 2024-25 into EPFO members’ accounts this week. 

EPFO credits interests into its members’ accounts every year upon ratification of the recommended rate by the central government. On 22 May 2025, the government had approved an 8.25% rate for the ongoing financial year. Shortly after the approval, the Organisation commenced preparatory work and began updating annual accounts on 6 June.

According to PTI, Mr. Mandaviya said, “This year, the annual account updation had to be done for 13.88 lakh establishments having 33.56 crore member accounts, out of which till 8th July, interest has been credited in 32.39 crore member accounts of 13.86 lakh establishments.” He further said, “This translates into completion of annual accounts updation for 99.9% of the establishments and 96.51% of the member accounts.”

He pointed out that interest crediting had begun in August of the previous FY (2023-24) and had been finished by the month of December. However, because of system optimization, the majority of this year's procedure was finished in June. Additionally, the minister stated that it is expected that the remaining accounts would be updated by the end of this week.

During the 237th meeting of EPFO's central board of trustees, chaired by Mandaviya at New Delhi on February 28, the decision was taken to maintain the 8.25% interest rate for FY25, just as it was the previous FY. Later, the idea was forwarded to the finance minister for securing the final approval.

Compared to other fixed-income instruments, the EPF scheme tends to offer relatively higher and more stable returns. The scheme helps to ensure long-term growth for individuals for their retirement savings. 

Last year, in the month of February, the Organisation has raised the interest rate on a marginal basis for employees’ provident fund deposits for 2023-24 to 8.25% from 8.15% rate fixed for 2022-23. In March 2022, EPFO decreased the rate for 2021-22 to 8.1%. This rate was the lowest in over four decades i.e., since 1977-78 when EPF interest rate was decided at 8%. 

Source: Times of India