Government ratifies 8.25% EPF interest rate for 2025-26; credit expected this month

The government has formally approved an 8.25% interest rate on Employees' Provident Fund (EPF) deposits for the financial year 2025-26, according to a source from the Employees' Provident Fund Organisation (EPFO). The interest is expected to be credited to the accounts of over seven crore contributing members this month.

The finance ministry gave its concurrence to the rate fixed earlier by the Central Board of Trustees (CBT), the apex decision-making body of the EPFO. The CBT, chaired by Union Labour Minister Mansukh Mandaviya, had decided on the 8.25% rate on March 2, 2026. This marks the third consecutive year that the rate has been maintained at this level.

The proposal was sent to the finance ministry for approval because the Government of India acts as the guarantor of the EPF. After vetting, the finance ministry approved the rate, and the EPFO, on the direction of the labour ministry, is likely to credit the interest into subscribers' accounts this month. Under a new system developed by the EPFO, interest will be credited immediately, the source added.

Historical data shows that the EPFO retained the 8.25% rate for 2024-25 as well. In 2023-24, the rate was marginally increased to 8.25% from 8.15% in 2022-23. Prior to that, the rate had been lowered to an over four-decade low of 8.10% for 2021-22, down from 8.5% in 2020-21. The 8.10% rate was the lowest since 1977-78, when it stood at 8%. In 2019-20, the rate was 8.5%, down from 8.65% in 2018-19. Earlier years saw rates of 8.65% (2016-17), 8.55% (2017-18), 8.8% (2015-16), 8.75% (2013-14 and 2014-15), 8.5% (2012-13), and 8.25% (2011-12).