EPFO Announces Retention of 8.25% Interest Rate on EPF for FY 2024-25.
National
In May 2025, the Ministry of Finance (MoF) approved an 8.25% interest rate on Employees’ Provident Fund (EPF) deposits for the Financial Year 2024-25 (FY25).
- This rate was initially recommended during the 237th meeting of the Central Board of Trustees (CBT) of the Employees’ Provident Fund Organisation (EPFO), held in February 2025 under the chairmanship of Union Minister Mansukh Mandaviya, Ministry of Labour & Employment (MoL&E), Government of India.
- The interest rate has been retained for the second consecutive year, making EPF one of the most attractive fixed-income investment options in India. Notably, the rate was marginally increased to 8.25% in FY24 from 8.15% in FY23.
- The Employees’ Provident Fund Organisation (EPFO) is a statutory body functioning under the Ministry of Labour & Employment (MoL&E), Government of India. It was established under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952. The organisation plays a key role in managing retirement savings for employees in the organised sector.
Main Point :- (i) The Central Board of Trustees (CBT), formed on March 4, 1952, serves as the apex decision-making body of the EPFO. It is responsible for framing policies, overseeing operations, and deciding on key matters such as interest rates. The CBT is chaired by the Union Minister of Labour and Employment.
(ii) EPFO manages three major schemes: EPF (1952) for retirement savings, EPS (1995) for pension benefits, and EDLI (1976) for insurance in case of an employee’s death. These schemes ensure financial security for employees and their families.
(iii) The EPF Scheme is a mandatory retirement savings plan for employees in the organised sector. Both employer and employee contribute 12% each of the basic salary plus dearness allowance. Contributions are eligible for tax deductions under Section 80C of the Income Tax Act, 1961. The interest earned (up to â‚ą5 lakh annually) is tax-free. Partial withdrawals are allowed in emergencies like medical needs or housing. Employees can check their EPF balance via the UMANG App or the official EPFO website.
About Employees' Provident Fund Organisation (EPFO)
Central Provident Fund Commissioner (CPFC) : Ramesh Krishnamurthi
Headquarters: New Delhi
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