The central government has approved an interest rate of 8.25% on Employees’ Provident Fund (EPF) deposits for the financial year 2024–25. This marks the highest interest rate since FY 2019–20 and will benefit over six crore EPF subscribers. The decision follows the recommendation by the Employees’ Provident Fund Organisation (EPFO) in March 2025 and reflects strong returns from debt and equity investments.
In comparison, the EPF interest rate was 8.15% in 2023–24, up slightly from 8.10% in 2022–23. The continuous upward revision of rates highlights EPFO’s effective investment strategies and sustained financial performance. The latest hike indicates growing confidence in the fund’s management and is likely to enhance retirement savings for millions of Indian workers.
Separately, EPFO also announced an increase in the auto-settlement limit for advance claims from ?1 lakh to ?5 lakh. Originally launched for medical emergencies, the auto-claim process now covers education, marriage, and housing-related expenses. With nearly 95% of claims currently settled through automation, and most completed within three days, the move is expected to significantly improve convenience and access to funds for EPFO’s 7.5 crore members.