EPFO Interest Rate 2025-26 Approved at 8.25%, Interest Credit Likely This Month

The government has ratified an 8.25 per cent rate of interest on Employees' Provident Fund (EPF) deposits for the financial year 2025-26, paving the way for the benefit to be credited to more than seven crore contributing members. According to a source, the interest amount is likely to be deposited into subscribers' accounts later this month following approval from the Finance Ministry.

The approval comes after the Employees' Provident Fund Organisation (EPFO) proposed retaining the 8.25 per cent interest rate for a third consecutive year. The rate was recommended by the Central Board of Trustees (CBT), the apex decision-making body of the EPFO, and subsequently sent to the Finance Ministry for concurrence. EPFO 3.0 Update: PF Withdrawals Through UPI and ATM Soon, Auto-Settlement Limit Raised to INR 5 Lakh.

Finance Ministry Gives Approval

EPFO provides the rate of interest on EPF deposits only after it is ratified by the government through the Finance Ministry. The source told PTI that the Finance Ministry has given its concurrence to the 8.25 per cent rate of interest fixed by the CBT.

Earlier, on March 2, 2026, the CBT, in a meeting chaired by Union Labour Minister Mansukh Mandaviya, decided to retain the 8.25 per cent interest rate for the financial year 2025-26. This marks the third consecutive year that the rate has remained unchanged. Thereafter, the proposal was sent to the Finance Ministry for concurrence, as the Government of India acts as the guarantor of EPF deposits. EPFO Adds 19.29 Lakh Net Members in June; New Online Services Make PF Updates and E-Nominations Easier.

Interest Credit Likely This Month

The source said that the Finance Ministry has approved the proposal after vetting it and that the EPFO, on the direction of the Labour Ministry, is likely to credit the 8.25 per cent interest for 2025-26 into subscribers' accounts this month.

The source also said that under the new ecosystem developed by the EPFO, the interest on EPF deposits will be credited into subscribers' accounts immediately. If implemented as planned, this could reduce waiting periods for members and streamline the annual interest credit process.

EPFO Maintains Rate for Third Consecutive Year

The EPFO had also retained the 8.25 per cent interest rate for the financial year 2024-25. Before that, the retirement fund body increased the interest rate marginally to 8.25 per cent for 2023-24 from 8.15 per cent in 2022-23.

The decision to maintain the rate reflects stability in EPFO's returns to subscribers despite changing economic and interest rate conditions.

Historical Trend in EPF Interest Rates

EPF interest rates have witnessed several changes over the past decade. In March 2022, EPFO lowered the interest rate on EPF deposits for 2021-22 to 8.10 per cent from 8.5 per cent in 2020-21, marking the lowest level in over four decades.

The 8.10 per cent rate for 2021-22 was the lowest since 1977-78, when the interest rate stood at 8 per cent. Earlier, in March 2020, EPFO reduced the interest rate to 8.5 per cent for 2019-20 from 8.65 per cent in 2018-19. Interest rates stood at 8.65 per cent in 2016-17, 8.55 per cent in 2017-18 and 8.8 per cent in 2015-16.

The retirement fund body had offered 8.75 per cent interest in both 2013-14 and 2014-15, compared with 8.5 per cent in 2012-13. The interest rate was 8.25 per cent in 2011-12.

With government approval now in place, over seven crore EPF subscribers can expect the 8.25 per cent annual interest to be credited to their accounts in the coming weeks. The move ensures continuity in returns for retirement savings while supporting faster processing under EPFO's upgraded digital ecosystem.

(The above story first appeared on LatestLY on Jun 18, 2026 03:41 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).