EPFO Interest Rate Unchanged At 8.25% For 2024-25 - What It Means To You

The Employees' Provident Fund Organisation (EPFO) has set the interest rate on provident fund (PF) deposits at 8.25% for 2024-25, as per reports from PTI. This decision keeps the rate unchanged from the previous year.

“EPFO fixes 8.25 pc interest rate on employees' provident fund deposits for 2024-25: Sources”, wrote PTI on X.

Recent Interest Rate Trends

In 2023-24, the interest rate was raised to 8.25% from 8.15% in 2022-23. The lowest rate in recent decades was 8.1% in 2021-22, marking a 40-year low.
Historically, rates have seen fluctuations, with 8.65% in 2018-19, 8.5% in 2019-20, and 8.8% in 2015-16.

EPFO’s Growing Payouts

The retirement body processed 50.8 million claims worth ₹2.05 lakh crore in 2024-25, an increase from 44.5 million claims totaling ₹1.82 lakh crore in the previous year. The 8.25% interest rate in 2023-24 was based on EPFO’s highest-ever income of ₹1.07 lakh crore, earned on a principal of ₹13 lakh crore. 

In comparison, 2022-23 saw ₹91,151.66 crore in income on a principal of ₹11.02 lakh crore.

EPFO 3.0 Updates

The Employees' Provident Fund Organisation (EPFO) has set a goal to finish the Centralised IT-Enabled System (CIETS 2.01) and EPFO 3.0 by March 31.  The trial will take place when the IT system work is finished, according to EPFO officials.  It is anticipated that EPFO members will begin to get banking-like services from their EPF account by the middle of June this year.

By maintaining the 8.25% interest rate, EPFO aims to offer stability to its members while balancing market conditions and fund performance.