Government Approves 8.25% EPF Interest Rate For 2024-25

2025-05-24 06:08:19

(MENAFN- AsiaNet News) The central government has ratified an interest rate of 8.25 percent on Employees' Provident Fund (EPF) deposits for the financial year 2024 to 2025. A senior official confirmed the decision on Saturday.

This move follows the recommendation made by the Employees' Provident Fund Organisation (EPFO) in March 2025. The revised rate will benefit more than six crore EPF subscribers across India. It is the highest interest rate offered since the 2019 to 2020 financial year.

In the previous financial year, 2023 to 2024, the EPF interest rate was fixed at 8.15 percent. This had been a slight increase from 8.10 percent in 2022 to 2023. The rise reflected improved returns from debt instruments and better performance in equity investments. The latest rate of 8.25 percent indicates sustained confidence in EPFO's investment strategies and financial management.

In a separate development, the EPFO had earlier announced a significant upgrade to its advance claim process. In March 2025, the organisation decided to raise the auto-settlement limit for advance claims from one lakh rupees to five lakh rupees. This fivefold increase is expected to boost convenience for the organisation's 7.5 crore members and enhance the overall ease of access to funds.

The auto-settlement facility, first launched in April 2020 for medical emergencies, has seen regular improvements. In May 2024, the threshold was raised from fifty thousand rupees to one lakh rupees. Now, with the limit extended to five lakh rupees, members will be able to receive funds more quickly when needed.

In addition to medical emergencies, the auto-settlement feature has now been extended to include expenses related to education, marriage, and housing. EPFO has stated that nearly 95 percent of all claims are currently settled through the automated process. Most claims are now processed within three days, a sharp improvement from the earlier timeline of ten days.

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