EPFO Likely to Keep FY26 Interest Rate Unchanged At 8.25%

The Employees’ Provident Fund Organisation (EPFO) is expected to maintain the deposit interest rate at 8.25% for FY26, according to The Moneycontrol report. 

Interest Rate Decision and Corpus Position 

As per the report, EPFO is unlikely to alter the current 8.25% rate, even though a marginal cut may be discussed when the Central Board of Trustees (CBT) meets in early March.  

The CBT is the top decision-making body that approves how EPFO funds are invested and how returns are distributed to subscribers. 

If approved, this would be the third consecutive year with the same declared interest rate. EPFO computes interest on balances monthly but credits it to subscriber accounts once a year after the financial year closes. 

The organisation currently manages a corpus of roughly ₹25–26 lakh crore across debt and equity assets. Investment allocation is tilted toward State Development Loans, central government securities, corporate bonds and exchange traded funds. 

Returns Outlook and Diversification Plans 

Officials noted that market performance so far in FY26 has been reasonably supportive, helping portfolio returns. Benchmark equity indices recorded double-digit gains over the last calendar year, which may aid overall yields. Final investment return figures will be presented at the March CBT meeting. 

In FY24, EPFO’s investment portfolio yield was about 7.62%, while subscribers received 8.25%, with the gap managed through surplus and smoothing mechanisms. Discussions are also underway on gradually increasing equity exposure to improve long-term returns. 

A joint committee involving EPFO, the finance ministry and the RBI is expected to review options for broader portfolio diversification.  

Read More: EPFO Update 2026: Get Your PF Money in Just 8 Days with Online Claims! 

Conclusion 

A steady 8.25% rate for FY26 would signal continuity in EPFO’s return policy, balancing member payouts with portfolio sustainability. 

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