Mumbai, May 21:  Members of the Employees' Provident Fund (EPF) usually benefit from tax-free interest on their contributions and those made by their employers. Recently, there have been delays in crediting this interest, causing some concern among account holders. Although the Employees' Provident Fund Organisation (EPFO) declared an 8.25% interest rate for the fiscal year 2024-25 back in February, the credited amounts have not yet appeared in all EPF accounts.

The Employees' Provident Fund Organisation (EPFO) requires both employees and employers to contribute 12% of the employee’s basic salary plus dearness allowance to the provident fund. This accumulated amount earns interest annually, at a rate set by the EPFO each year. The interest is computed based on the monthly running balance and credited to members' accounts at the close of the financial year. EPFO Fixes 8.25% Interest Rate on Employees’ Provident Fund for 2024–25: Reports.

When To Expect Epf Interest

For FY 2024-25, EPF interest credit is similarly to the period 2023-24 expected to follow the same time frame. The interest rate announced is 8.25% in February 2024, but as outlined above, it will likely take a few months to actually credit the interest to any subscribers' accounts because of the size and timing associated with each stage of detailed statistical calculations, and coordinating the various necessary institutions at each step. After going through all the administrative procedures and validations, Members could expect to have the interest credited to their accounts sometime around August-September of 2025. EPFO Decides To Retain Interest Rate on Employees’ Provident Fund at 8.25% for 2024–25; Proposal To Be Sent to Ministry of Finance for Clearance.

Will You Be at Loss if EPF Interest Credit Is Delayed?

You will not lose out if you have a late EPF interest credit. The Employees' Provident Fund Organisation calculates interest every month on your running balance. Crediting the interest amount is done only at the end of the financial year. If the creditation is done late, you will still earn the total amount of declared interest, even if the credit happens after a delay.

(The above story first appeared on LatestLY on May 21, 2025 12:30 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).