The Central Government has approved an 8.25% interest rate on Employees’ Provident Fund (EPF) deposits for the financial year 2025-26, according to a PTI report citing official sources. The decision is expected to benefit over seven crore EPFO subscribers, with interest likely to be credited to accounts this month.
The Employees’ Provident Fund Organisation (EPFO) will now proceed with interest crediting after receiving formal clearance from the Ministry of Finance, which is the final approving authority for the rate recommended by the Central Board of Trustees (CBT).
As per the report, the finance ministry has given its concurrence to the 8.25% interest rate proposed by the CBT, the apex decision-making body of the EPFO. The rate, which was earlier decided in March 2026, has now received final approval, paving the way for implementation.
The CBT, chaired by Union Labour Minister Mansukh Mandaviya, had recommended retaining the interest rate at 8.25% for FY26. This marks the third consecutive year that the EPF interest rate has remained unchanged, reflecting policy continuity amid stable macroeconomic conditions.
Following the approval, EPFO is expected to credit the interest amount into subscribers’ accounts soon. The organisation typically credits interest only after receiving formal notification from the government, ensuring compliance with statutory procedures.
The move is set to directly benefit more than seven crore EPF subscribers across India, providing steady returns on retirement savings. The timely crediting of interest also reinforces EPFO’s role as a key pillar of long-term financial security for salaried individuals.
The EPF interest rate was last revised marginally upward by 10 basis points to 8.25% for FY24, compared to 8.15% in FY23. Since then, the rate has remained stable, indicating a cautious approach by policymakers amid evolving economic conditions and investment yield considerations.
The confirmation of the 8.25% EPF interest rate for FY26 underscores policy consistency in India’s retirement savings framework. With final approval in place, EPFO subscribers can expect timely credit of interest, reinforcing confidence in one of the country’s largest social security schemes.
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Published on: Jun 18, 2026, 4:36 PM IST
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