EPF Interest Rate of 8.25% for 2024-25: How Much Will You Earn?

The EPFO (Employees Provident Fund Organisation) has suggested an 8.25% interest rate for the financial year 2024-25. This is the same rate as last year (2023-24).

As per a PIB press release on February 28, 2025, the Central Board of Trustees of EPFO has suggested an 8.25% annual interest rate on EPF savings for the financial year 2024-25. The government will officially approve this rate, after which EPFO will add the interest to members’ accounts.

Some people are aware of how EPF is calculated. EPF members can easily calculate the interest they earn on their monthly contributions. This helps them check and confirm the interest amount that will be added to their EPF account in the future.

How to Calculate EPF Interest?

As per Paragraph 60 of the EPF Scheme, 1952, interest on your EPF balance is calculated every month based on your running balance. However, the interest is added to your account only at the end of the financial year. This works in the same way as PPF interest, where monthly calculations happen, but the total interest is credited annually.

The EPF interest rate is usually announced in the last month of the financial year it applies to. However, the interest amount is not credited immediately. This delay happens because the Labour Ministry first proposes the rate to the Finance Ministry. The Finance Ministry must approve and officially notify it. Only after this approval does the process of adding interest to EPF accounts begin.

Latest Initiatives Introduced by the EPFO

In its 237th CBT meeting, EPFO announced some important updates:

If an EPF member passes away without completing one year of continuous service, their family will still receive a minimum life insurance benefit of Rs. 50,000.

The Employees’ Deposit Linked Insurance (EDLI) scheme has been extended to help families of EPF members who pass away within six months of their last contribution. The benefit will be provided as long as the member’s name is not removed from the company records.

EPFO has made it easier to qualify for EDLI benefits. Now, even if there is a gap of up to two months between two jobs, it will still be considered continuous service, allowing members to receive higher EDLI benefits.