Govt approves 8.25% EPF interest rate for FY26:Returns unchanged for 3rd consecutive year; over 7 crore members likely to benefit

The Centre has ratified an 8.25% interest rate on Employees’ Provident Fund (EPF) deposits for the financial year 2025-26. The interest amount is likely to be credited to the accounts of more than seven crore contributing members later this month, according to sources. The Employees’ Provident Fund Organisation (EPFO) can begin crediting the interest only after receiving approval from the Ministry of Finance. The ministry has now given its concurrence to the 8.25% rate recommended by the Central Board of Trustees (CBT), the EPFO’s apex decision-making body. EPF interest rate unchanged for third consecutive year On March 2, 2026, the CBT, chaired by Union Labour Minister Mansukh Mandaviya, decided to retain the 8.25% interest rate for 2025-26. This is the third straight year that the EPF interest rate has remained unchanged. Following the recommendation, the proposal was sent to the Ministry of Finance for final approval, as the Government of India acts as the guarantor of EPF deposits. The PTI report said the proposal has now been vetted and approved, and the EPFO is expected to credit the interest to subscribers’ accounts this month under the direction of the Ministry of Labour. New EPFO system to enable faster interest credit Under the new digital ecosystem developed by the EPFO, interest will now be credited to subscribers’ accounts immediately after the process is initiated, reducing delays in crediting annual interest. How EPF interest rates have changed over the years The EPFO had retained the 8.25% interest rate for 2024-25. It had raised the rate to 8.25% for 2023-24 from 8.15% in 2022-23. In March 2022, the EPFO reduced the interest rate for 2021-22 to 8.10%, the lowest level in over four decades, from 8.5% in 2020-21. The rate was the lowest since 1977-78, when EPF subscribers received 8% interest. Earlier, the EPFO had cut the interest rate to 8.5% for 2019-20 from 8.65% in 2018-19. The rate stood at 8.65% in 2016-17, 8.55% in 2017-18, and 8.8% in 2015-16. EPF subscribers received 8.75% interest in 2013-14 and 2014-15, higher than 8.5% in 2012-13. The interest rate was 8.25% in 2011-12.