How Much Has Your EPF Grown? Check Returns And Changes Over The Last 5 Years

The Indian Government has approved the interest rate for the employees of the Employees Provident Fund Organization (EPFO).

While approving the rate of interest for more than 7 crore subscribers of EPFO, the government will credit the interest amount to the subscribers soon.

What Is The EPFO Approved Interest Rate?

The interest rate has been fixed at 8.25% for 2024-25 by the EPFO.

For instance, if your monthly basic salary is Rs 50,000, you are 30 years old, and you contribute 12% of your salary towards EPF, with an annual salary increase of 5% and the current EPF interest rate of 8.25%, you could accumulate approximately Rs 2.59 crore (Rs 2,59,41,394) by the time you retire at 60.

While the employer also contributes 12%, not all of it goes into your EPF savings. Only 3.67% is added to your EPF balance, and the rest - 8.33% - is used to build your pension under a separate scheme called EPS.

EPF Interest Rate: A 5-Year Snapshot

FY25: In February, the Central Board of Trustees (CBT) recommended an interest rate of 8.25% for the EPFO members for FY25.

However, the Finance Ministry has to approve the interest rate after which the EPF will credit the rate of interest into the accounts of the subscribers.

FY24: Previously, the EPFO had decided to increase the rate to 8.25% in 2023-24. 

But the CBT had retained the 8.25% rate for FY25.

FY23: For the financial year 2022-23, the EPFO approved interest rate was 8.15%.

FY22: For the financial year 2021-22, the interest rate was 8.1% which is the lowest since 1977-78, when the interest rate was 8%.

FY21: For the fiscal year 2020-21, the interest rate was 8.50%.

Employees Provident Funds offer high and stable income as compared to several other fixed-income instruments.

Further, the interest that is earned on EPF deposits is tax-free (up to a specific limit).

According to the government, this reflects solid confidence in the credit profile of EPFO's investments and its ability to offer competitive returns to its members.

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