The Employees’ Provident Fund (EPF) interest rate for the financial year 2024-25 will remain at 8.25%. This has been confirmed by the Employees’ Provident Fund Organisation (EPFO) and the government. The rate is reliable and hence, more than 70 million people are taking advantage of it by building a safer retirement fund during the economic ups and downs.
What is EPF Interest Rate?
The EPFO determines the EPF interest rate based on investment income and government approval every year. It is applicable to the monthly closing balances, has a yearly compounding nature, and tax-free credits are given at the end of the financial year. Thus, it offers higher returns compared to other fixed-income options.
Current Rate for 2025
The government approved an 8.25% rate for the fiscal year 2024-25 (April 2024 to March 2025) in May 2025. This is the same rate as the previous year, which means that it will be a steady growth with each credit completed or in progress by late 2025.
How Interest is Calculated
The interest calculation is made on a monthly basis using the lowest balance between the 1st and the last day of each month at the rate of 8.25%/12. The interest is then credited on the last day of March each year thus compounding to significantly increase long-term savings.
Benefits of EPF at 8.25%
The government-secured rate provides risk-free and tax-exempt returns. It is perfect for retirement planning since contributions are eligible for Section 80C deductions and withdrawals after five years are tax-free.
| Feature | Details |
|---|---|
| Interest Rate (FY 2024-25) | 8.25% per annum |
| Calculation Basis | Monthly on closing balance |
| Crediting Frequency | Annually (end of financial year) |
| Tax Status | Fully exempt (up to limits) |
| Previous Year Rate (2023-24) | 8.25% |
| Beneficiaries | Over 7 crore subscribers |
Why EPF Remains a Top Choice in 2025
The EPF Interest Rate 2025 at 8.25% gives one the advantage of stability along with decent returns when compared to bank FDs or none other schemes. The regular contributions create a compounding effect which makes a secured future.
Also read: LIC Smart Pension Plan 2025 Launched: Guaranteed Lifelong Income for Retirees