EPFO Likely to Retain Provident Fund Interest at 8.25% for 2025–26

The Employees’ Provident Fund Organisation (EPFO) has proposed retaining the interest rate on provident fund deposits at 8.25% for the financial year 2025–26 as per a news report by CNBC-TV18.

The recommendation was finalised at the 239th meeting of the Central Board of Trustees (CBT), chaired by Union Labour and Employment Minister Mansukh Mandaviya in New Delhi. The meeting was also attended by Union Minister of State Shobha Karandlaje, Labour & Employment Secretary Vandana Gurnani, and EPFO Central Provident Fund Commissioner Ramesh Krishnamurthi.

Following the CBT’s approval, the proposed rate will now be forwarded to the Ministry of Finance for its concurrence. Once cleared, the interest will be credited to the accounts of more than seven crore EPFO subscribers.

How is EPF Interest calculated?

Interest on EPF balances is computed on a monthly running balance but is credited to subscribers’ accounts at the end of the financial year. Accounts that remain inactive for 36 consecutive months are classified as dormant and cease to earn interest.

Also Read: New GDP Data: India’s Dollar Economy Slips to US$3.8 Trillion

Interest Rate Trend

The EPFO has kept the interest rate steady at 8.25% for the past two financial years. In FY24, the rate was increased from 8.15% to 8.25%. Earlier, in FY22, it was reduced to 8.10%, the lowest level in four decades. Notably, the 8.10% rate in 2021–22 was the lowest since 1977–78, when the EPF interest stood at 8%.

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