Has EPFO started crediting interest of 8.25% for FY2024-25 to EPF members? Here's what we know

The Employees’ Provident Fund Organisation (EPFO) has started crediting 8.25% interest for the financial year 2024-25 into the accounts of its members, bringing relief and clarity to millions of private-sector employees across India. Although the EPFO hasn’t sent official communication via SMS or email, several subscribers have reported noticing the credited interest reflected in their passbooks.

This development follows the Finance Ministry’s approval of the interest rate recommended by the EPFO’s Central Board of Trustees in February 2025. With around eight crore EPFO accounts nationwide, the move will significantly impact the retirement savings of a vast section of the workforce.

Typically, EPF interest is calculated monthly but credited in bulk once the financial year concludes. Most members see the credited interest reflected in their passbooks between June and August.

To verify the credited amount, EPF members can check their passbooks online through the EPFO website. They need to visit ‘Our Services’, select ‘For Employees’, and click on ‘Member Passbook’. Logging in with their Universal Account Number (UAN), password, and captcha code allows members to view and download detailed passbook entries for each financial year.

In cases where interest is not yet visible, members are advised to wait for a few days and then check again, as updates sometimes take time to appear across all accounts. If discrepancies persist, subscribers should file an online grievance through the EPFO portal or visit the nearest EPFO office. Another common issue occurs when member IDs from previous employers remain unmerged, causing balances to display as zero; this can be rectified through a transfer request.

The systematic crediting of interest underscores EPFO’s commitment to transparency and efficiency in managing retirement funds. With an interest rate higher than many traditional savings instruments, EPF remains a cornerstone of retirement planning for private-sector employees. Regularly reviewing passbooks and understanding how contributions and interest work are crucial steps for members aiming to safeguard and grow their retirement savings.

EPF subscribers

For EPF subscribers, understanding how contributions work is essential for maximising benefits. Under the Employees’ Provident Fund (EPF) scheme, private-sector employees contribute 12% of their basic salary plus dearness allowance (DA) each month to their EPF accounts. The employer matches this contribution, but with a split: only 3.67% of the employer’s share goes directly into the EPF account, while 8.33% is diverted to the Employees’ Pension Scheme (EPS), capped at Rs 1,200 per month.

Employees can choose to contribute more than the statutory 12%, but the minimum monthly contribution is Rs 1,800. The accumulated amount in the EPF account earns interest at a rate declared annually—in this case, 8.25% for FY25, compounded yearly. Employees can continue contributing until the age of 60, although the official retirement age under the scheme is 58, at which point they can withdraw their entire corpus.

EPF investments offer attractive tax benefits. Under the old tax regime, contributions of up to RS 1.5 lakh annually are eligible for tax deductions under Section 80C. Both the interest earned and the maturity amount remain tax-free under both the old and new tax regimes, provided total yearly contributions do not exceed Rs 2.5 lakh. In the new tax regime, tax benefits apply only to the employer’s contributions up to 12%, with no deduction available for the employee’s contribution.