The Indian government has officially ratified an 8.25 per cent interest rate for Employees’ Provident Fund deposits for the financial year 2025-26, bringing relief and expected credit to over seven crore subscribers this month.
Illustration: Dominic Xavier/Rediff
Key Points
- The government has ratified an 8.25 per cent interest rate on EPF deposits for the financial year 2025-26.
- Over seven crore contributing members are expected to have this interest credited to their accounts this month.
- The Central Board of Trustees (CBT) of EPFO had recommended the 8.25 per cent rate on March 2, 2026.
- This marks the third consecutive year the 8.25 per cent rate has been maintained, following a marginal increase in 2024 for FY23-24.
- The finance ministry’s concurrence was necessary as the Government of India guarantees the EPF.
The government has ratified 8.25 per cent rate of interest on employees’ provident fund (EPF) deposits for 2025-26, which is likely to be credited to over seven crore contributing members this month, a source said on Thursday.
EPFO provides the rate of interest on EPF after it gets ratified by the government through the finance ministry.
Approval Process and Timely Credit
The source told PTI that the finance ministry has given its concurrence to 8.25 per cent rate of interest fixed by Central Board of Trustees (CBT), the apex decision making body of the Employees’ Provident Fund Organisation (EPFO).
Earlier on March 2, 2026, the CBT in a meeting chaired by the Union Labour Minister Mansukh Mandaviya had decided to fix 8.25 per cent rate of interest for the financial year 2025-26, marking the third consecutive year this rate has been maintained.
Thereafter the proposal was sent to the finance ministry for concurrence as the guarantor of the EPF is the Government of India.
The source said that the finance ministry has approved the proposal after vetting it and the EPFO on the direction of the labour ministry is likely to credit the 8.25 per cent rate of interest for 2025-26 into subscribers’ accounts this month only.
The source also said that under the new ecosystem developed by the EPFO, the interest on the EPF will be credited into subscribers’ accounts immediately.
Historical Context of EPF Rates
In February last year, the EPFO had retained the 8.25 per cent rate of interest for 2024-25 fiscal year.
The EPFO, in 2024, increased the interest rate marginally to 8.25 per cent for 2023-24, from 8.15 per cent in 2022-23.
In March 2022, EPFO lowered the interest on post-retirement deposits for 2021-22 to an over four-decade low of 8.10 per cent from 8.5 per cent in 2020-21.
The 8.10 per cent rate for 2020-21 was the lowest since 1977-78, when the rate stood at 8 per cent.
In March 2020, EPFO lowered the interest rate on provident fund deposits to a seven-year low of 8.5 per cent for 2019-20, from 8.65 per cent provided for 2018-19.
EPFO provided an 8.65 per cent interest rate to its subscribers in 2016-17 and 8.55 per cent in 2017-18. The rate of interest was slightly higher at 8.8 per cent in 2015-16.
The retirement fund body gave 8.75 per cent rate of interest in 2013-14 as well as 2014-15, higher than 8.5 per cent for 2012-13.
The rate of interest was 8.25 per cent in 2011-12.
