Employees’ Provident Fund Organisation (EPFO) has begun crediting 8.25% interest for the financial year 2024–25 into member accounts.
Union Labour Minister Mansukh Mandaviya confirmed that the process, which traditionally stretches into the latter half of the year, is expected to be fully completed within this week, marking a significant improvement in operational efficiency.
The announcement comes as a relief to over 33.56 crore EPF subscribers, many of whom rely on timely interest credits for financial planning and retirement savings.
EPFO Interest Faster Processing: 96.51% of Accounts Already Updated
According to Mansukh, the EPFO has already credited interest to 32.39 crore member accounts across 13.86 lakh establishments, translating to 99.9% completion for establishments and 96.51% for member accounts.
The remaining accounts are expected to be updated within days.
This year’s crediting process began on June 6, following government approval on May 22, and has been largely completed by the end of June—two to three months earlier than last year, when the process started in August and concluded in December.
EPFO Interest Rate Retained at 8.25% for FY25
The decision to retain the 8.25% interest rate was made during the 237th meeting of EPFO’s Central Board of Trustees held on February 28, 2025, chaired by Mansukh.
The proposal was subsequently ratified by the Ministry of Finance, enabling EPFO to begin the annual account updates.
This rate matches the interest credited for FY24, which was marginally increased from 8.15% in FY23.
Notably, the rate had dipped to 8.1% in FY22, the lowest since 1977–78, when it stood at 8%.
EPF: A Stable Investment Amid Market Volatility
The EPF offers higher and more stable returns than many fixed-income investment options.
This makes it a preferred long-term savings vehicle for millions of Indian workers.
The early crediting of interest this year is expected to boost subscriber confidence and enhance retirement planning capabilities.
Surge in EPFO Membership Reflects Formalisation of Workforce
EPFO has reported a 31% jump in net member additions in April 2025.
During this period, 19.14 lakh new members joined the system, reflecting growing participation in formal employment.
8.49 lakh of the new EPFO members were first-time subscribers.
Among them, 4.89 lakh belonged to the 18–25 age group, reflecting a strong influx of young professionals into India’s formal workforce.
This surge is driven by increased job opportunities and growing awareness of social security benefits.
Successful digital outreach campaigns by EPFO have further contributed to this growth.
System Optimisation: A New Benchmark for Efficiency
Minister Mandaviya credited the early completion to system optimisation and improved backend processes, which have significantly reduced turnaround times.
“The process has now been optimised for faster processing, due to which the entire exercise has mostly been completed in June itself,” he stated.
This sets a new benchmark for EPFO’s operational efficiency. It also highlights the government’s commitment to digital transformation in public service delivery.
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