Percentage by volume is the amount of a component in a mixture per 100 units of volume of the total mixture. To solve this we use the equation,
M1V1 = M2V2
where M1 is the concentration of the stock solution, V1 is the volume of the stock solution, M2 is the concentration of the new solution and V2 is its volume.
25% x 100 = M2 x 500
M2 = 5%
The new label should be 5%.