No Change in EPFO Interest Rate: Proposal Sent to Ministry of Finance

The Employees’ Provident Fund Organisation (EPFO) has decided to maintain the interest rate on employees’ provident fund deposits at 8.25% for the 2024-25 financial year, unchanged from the previous year.

When Will Interest Will Be Credited?

This decision was made by the EPFO’s Central Board of Trustees during a meeting held on Friday. For the 2023-24 financial year, the EPFO had increased the interest rate on EPF to 8.25%, up from 8.15% in 2022-23, benefiting its 7 crore members. The proposal will now be sent to the Ministry of Finance for approval, after which the interest rate for 2024-25 will be credited to EPFO members’ accounts.

Application Under PoHW

As per news reports, the EPFO has processed 70% of the applications received under the Pension on Higher Wages (PoHW) scheme and aims to complete the processing of all applications by March 31, 2025, as per an official statement.

The committee has directed the EPFO to expedite the processing of cases for members who have already made the necessary contributions, including those from large public sector undertakings (PSUs), as outlined by the Supreme Court ruling on the matter.

To enhance the convenience of its members, the EPFO is also working on simplifying the claim processing system, including streamlining validations for partial withdrawals. The committee was briefed on this progress, with a technical panel recommending the simplification of validations for advance withdrawals in Form 31.

Centralised Pension Payment System 

The EC was further informed that the Centralised Pension Payment System (CPPS) was implemented across all regional offices in January 2025. This system allows pensioners to receive their pensions seamlessly from any bank or branch across the country. In January 2025, 69.4 lakh pensioners received their pensions through CPPS, achieving a 99.9% success rate.

The EC stressed the importance of transitioning to the Aadhaar-Based Payment System (ABPS) within a set timeframe, ensuring pension payments are directly credited to Aadhaar-linked bank accounts for greater security and efficiency.

Conclusion

EPFO has decided to not change the interest rate on employees’ provident fund deposits to 8.25% for the 2024-25 financial year and interest will be credited after the approval from the Ministry of Finance.

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