Employees' Provident Fund Organisation (EPFO) subscribers may soon see interest credited to their accounts for the financial year 2025-26.
The Finance Ministry has approved the 8.25% EPF interest rate recommended earlier by the EPFO's Central Board of Trustees (CBT), paving the way for the interest payout process to begin.
Government clears 8.25% EPF interest rate
The central government has approved an annual interest rate of 8.25% on Employees' Provident Fund (EPF) deposits for the financial year 2025-26. The approval comes after the Finance Ministry ratified the rate recommended by the Central Board of Trustees (CBT), the apex decision-making body of the Employees' Provident Fund Organisation (EPFO).
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According to sources cited by News18, the approved interest is likely to be credited into the accounts of more than seven crore contributing EPF members during the current month. EPFO can begin the crediting process only after receiving formal concurrence from the government, which acts as the guarantor of the EPF scheme.
The decision follows the CBT recommendation
The CBT had decided to retain the 8.25% interest rate during its meeting held on March 2, 2026, under the chairmanship of Union Labour Minister Mansukh Mandaviya. The recommendation was subsequently forwarded to the Finance Ministry for approval.
With the ministry now giving its nod, the EPFO is expected to complete the process of crediting interest to subscribers' accounts in the coming weeks. Officials indicated that the updated EPFO ecosystem is designed to ensure faster credit of interest once approvals are in place, according to News18.
Rate remains unchanged for third straight year
The 8.25% interest rate has now been maintained for the third consecutive financial year. EPFO had also offered the same rate for FY2024-25, while it had marginally increased the rate to 8.25% for FY2023-24 from 8.15% in FY2022-23.
The EPF interest rate had fallen to 8.10% for FY2021-22, which was the lowest level in more than four decades. Before that, subscribers received 8.5% for FY2020-21.
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The interest credit process is to begin soon
EPFO members have been awaiting the annual interest credit since the rate was announced earlier this year. With government approval now secured, the retirement fund body is expected to start updating member accounts shortly. Subscribers can check their balances and passbooks through EPFO's online services once the interest is reflected.
