New Delhi: The government has approved an interest rate of 8.25% on Employees’ Provident Fund (EPF) deposits for the financial year 2025-26, paving the way for interest payments to be credited to the accounts of more than 70 million subscribers.
According to sources, the Finance Ministry has ratified the proposal recommended by the Central Board of Trustees (CBT), the apex decision-making body of the Employees’ Provident Fund Organisation (EPFO). The approved interest is expected to be credited to eligible subscribers’ accounts later this month.
The CBT, chaired by Union Labour Minister Mansukh Mandaviya, had decided on March 2 to retain the EPF interest rate at 8.25% for FY2025-26. This marks the third consecutive year that the rate has remained unchanged.
As the Government of India acts as the guarantor of EPF deposits, the recommendation required approval from the Finance Ministry before implementation. Following its review, the ministry cleared the proposal, sources said.
Officials indicated that under EPFO’s upgraded digital ecosystem, interest credits will be processed more efficiently, enabling quicker transfer of earnings into subscribers’ accounts.
Last year, EPFO also maintained the EPF interest rate at 8.25% for FY2024-25. The rate had been increased from 8.15% in FY2022-23 to 8.25% for FY2023-24 before being retained for subsequent years.
The move is expected to benefit millions of salaried employees who contribute regularly to the retirement savings scheme.
