EPF accounts to get 8.25% interest soon after government approval

The government has approved an 8.25% EPF interest rate for 2025-26, paving the way for account credits this month. The decision lets EPFO begin processing payments for over 7 crore subscribers after Finance Ministry clearance.

In Short

• Govt approves 8.25% EPF interest rate for 2025-26
• Interest to be credited to subscribers' accounts this month
• Rate maintained for third consecutive year for stability

The government has approved an 8.25% interest rate on Employees' Provident Fund (EPF) deposits for the financial year 2025-26, clearing the way for the interest amount to be credited to subscribers' accounts this month, according to a PTI report.

The approval comes after the Finance Ministry gave its concurrence to the interest rate recommended by the Central Board of Trustees (CBT), the highest decision-making body of the Employees' Provident Fund Organisation (EPFO).

8.25% INTEREST RATE TO BE CREDITED SOON

According to a source quoted by PTI, the Labour Ministry is expected to direct EPFO to credit the 8.25% interest into subscribers' accounts this month itself.

The interest rate was originally approved by the CBT during its meeting on March 2, 2026, chaired by Union Labour Minister Mansukh Mandaviya. The decision marked the third consecutive year that the EPF interest rate has been maintained at 8.25%.

As the Government of India acts as the guarantor for EPF deposits, the recommendation required final approval from the Finance Ministry before the interest could be credited to members' accounts.

WHAT DOES THIS MEAN FOR EPF SUBSCRIBERS?

The approval means EPFO can now begin the process of depositing annual interest into EPF accounts.

The retirement fund body is also expected to use its new digital ecosystem to speed up the process.

According to the PTI report, under the new EPFO system, interest amounts will be credited to subscribers' accounts immediately after the necessary approvals and processing are completed.

For salaried employees, EPF remains one of the most important long-term retirement savings instruments, with annual interest credited to their accumulated balance.

WHY HAS THE RATE BEEN KEPT UNCHANGED?

EPFO had retained the same 8.25% interest rate for 2024-25 as well.

The retirement fund body had raised the rate to 8.25% for 2023-24 from 8.15% in 2022-23.

By maintaining the rate for a third straight year, EPFO has provided stability to subscribers despite changing interest rate conditions in the broader economy.

HOW EPF INTEREST RATES HAVE MOVED OVER THE YEARS

EPF interest rates have seen several changes over the past decade.

In 2021-22, EPFO reduced the interest rate to 8.10%, the lowest level in more than four decades. According to the report, the rate was last lower in 1977-78, when EPF deposits earned 8%.

Before that, EPFO had offered:

- 8.5% in 2020-21 and 2019-20

- 8.65% in 2018-19 and 2016-17

- 8.55% in 2017-18

- 8.8% in 2015-16

- 8.75% in 2013-14 and 2014-15

The interest rate stood at 8.25% in 2011-12 as well.

Subscribers do not need to take any action to receive the interest credit.

Once EPFO completes the process, the interest amount will automatically reflect in members' EPF accounts. Subscribers can check the updated balance through the EPFO portal, UMANG app, passbook facility or other official EPFO channels after the credit is completed.

For now, the key takeaway is that the long-awaited approval has arrived, and over 7 crore EPF members could see the 8.25% interest credited to their accounts before the end of the month.

- Ends