EPFO to complete process of crediting interest into members' account for FY25 this week: Mandaviya

Labour Minister Mansukh Mandaviya on Tuesday said the retirement fund body will complete the process of crediting 8.25% interest for FY25 into members' accounts this week.

The interest amount is credited into the EPF members' accounts every year by the Employees' Provident Fund Organisation (EPFO) after ratification of the interest rate by the central government.

"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.

"This translates into completion of annual accounts updation for 99.9% of the establishments and 96.51% of the Member Accounts," the minister said while talking to reporters.

For the current year (2024-25), the approval of the central government for crediting of interest at the rate of 8.25% on EPF accumulations came on May 22, 2025.

Accordingly, preparatory activities were immediately undertaken, and annual accounts updation commenced from the night of June 6, 2025, he stated.

The minister noted that in 2023-24, the process of crediting the interest to members' accounts commenced in August and was completed in December.

The process has now been optimised for faster processing, due to which the entire exercise has mostly been completed in June itself, he pointed out.

It is expected that the annual accounts in respect of such remaining establishments will also be completed within this week, he stated.

EPFO, on February 28, had decided to retain the interest rate of 8.25% on employees' provident fund (EPF) deposits for the financial year 2024-25, equal to the rate provided in the preceding fiscal. The approved rate of interest for 2024-25 was sent for the concurrence of the Ministry of Finance.

The decision on interest rate was taken at the 237th meeting of the Central Board of Trustees of the EPFO, chaired by Mandaviya in New Delhi on February 28.

Compared to many fixed-income instruments, EPF offers relatively higher and stable returns, ensuring steady growth on post-retirement savings.

In February 2024, the EPFO increased the interest rate marginally to 8.25% for 2023-24, from 8.15% in 2022-23.

In March 2022, EPFO had lowered the interest on EPF for 2021-22 to an over four-decade low of 8.1% from 8.5% in 2020-21.

The 8.10% rate of interest on EPF for 2020-21 was the lowest since 1977-78, when it stood at 8%.