New Delhi, June 18, 2026 : The Government has ratified an interest rate of 8.25 per cent on Employees’ Provident Fund (EPF) deposits for the financial year 2025-26, paving the way for the Employees’ Provident Fund Organisation (EPFO) to credit the interest amount to the accounts of more than seven crore contributing members, likely within this month.
According to official sources, the Finance Ministry has approved the proposal submitted by the EPFO after the Central Board of Trustees (CBT), the apex decision-making body of the organisation, recommended retaining the 8.25 per cent rate for a third consecutive year.
The decision was originally taken during the CBT meeting held on March 2, 2026, under the chairmanship of Union Labour and Employment Minister Mansukh Mandaviya.
As the Government of India acts as the guarantor of EPF deposits, the interest rate proposal required concurrence from the Finance Ministry before implementation.
Sources said the ministry has completed the vetting process and granted its approval, following which the Labour Ministry has directed the EPFO to begin crediting the interest amount into subscribers’ accounts.
The interest payout is expected to benefit over seven crore EPF contributors across the country.
Faster Interest Credit Under New EPFO System
Officials indicated that under the newly developed EPFO digital ecosystem, the process of crediting interest into subscribers’ accounts has been streamlined, enabling faster and more efficient updates of balances.
The move is expected to ensure that members receive the interest benefit without significant delays once the formal process is initiated.
Interest Rate Maintained for Third Consecutive Year
The EPFO had also retained the 8.25 per cent interest rate for 2024-25, while in 2023-24 it had marginally increased the rate to 8.25 per cent from 8.15 per cent offered in 2022-23.
The provident fund interest rate has witnessed several fluctuations over the past decade:
- 2025-26: 8.25%
- 2024-25: 8.25%
- 2023-24: 8.25%
- 2022-23: 8.15%
- 2021-22: 8.10%
- 2020-21: 8.50%
- 2019-20: 8.50%
- 2018-19: 8.65%
- 2017-18: 8.55%
- 2016-17: 8.65%
- 2015-16: 8.80%
- 2014-15: 8.75%
- 2013-14: 8.75%
- 2012-13: 8.50%
- 2011-12: 8.25%
Notably, the 8.10 per cent interest rate declared for 2021-22 was the lowest in over four decades, while the rate had stood at 8 per cent in 1977-78.
Relief for Salaried Employees
The government’s approval provides certainty to millions of salaried employees and retirement savers who rely on EPF returns as a key component of their long-term financial security. The continuation of the 8.25 per cent rate reflects EPFO’s effort to balance attractive returns for subscribers with the sustainability of the retirement fund.
With the Finance Ministry’s concurrence now in place, EPF account holders can expect the interest for FY 2025-26 to start reflecting in their accounts shortly.
