Govt approves EPF rate of 8.25% for FY26: When will subscribers receive the interest amount?

The Union government has approved 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 amount to be credited to the accounts of more than seven crore contributing members, according to a PTI report, citing official sources.

The Employees' Provident Fund Organisation (EPFO) can officially credit interest to subscribers' accounts only after the rate recommended by its governing body receives approval from the Finance Ministry.

A source told PTI that the Finance Ministry has endorsed the 8.25 per cent interest rate proposed by the Central Board of Trustees (CBT), the apex decision-making body of the EPFO.

The recommendation was made during a CBT meeting held on 2 March 2026, under the chairmanship of Union Labour Minister Mansukh Mandaviya. The board decided to retain the 8.25 per cent rate for FY26, marking the third straight year that EPF subscribers will receive the same level of returns on their deposits.

Following the board's decision, the proposal was forwarded to the Finance Ministry for its concurrence, as the Government of India acts as the guarantor of EPF deposits.

When will EPF interest be credited?

The ministry has now completed its review and approved the proposal. Based on directions from the Labour Ministry, the EPFO is expected to begin crediting interest for FY26 into members' accounts during the current month, according to the PTI report.

Under the EPFO's upgraded digital ecosystem, interest amounts will be reflected in subscribers' accounts immediately after the credit process is initiated, ensuring faster updates than in previous years, it added.

Historical trajectory of EPF interest rates

The retirement fund body had also retained the 8.25 per cent interest rate for FY25. Earlier, in FY24, EPFO had marginally raised the rate to 8.25 per cent from 8.15 per cent offered in FY23.

Over the years, EPF interest rates have witnessed several changes. In March 2022, the EPFO reduced the rate for FY22 to 8.10 per cent from 8.50 per cent in FY21, taking it to the lowest level in more than four decades. The 8.10 per cent return was the lowest since 1977-78, when EPF subscribers earned 8 per cent interest.

Before that, the EPFO had lowered the rate to 8.50 per cent for FY20 from 8.65 per cent in FY19. The organisation had offered 8.65 per cent in FY17, 8.55 per cent in FY18 and 8.80 per cent in FY16. Interest rates stood at 8.75 per cent in both FY14 and FY15, compared with 8.50 per cent in FY13, while subscribers received 8.25 per cent interest in FY12.

The latest approval ensures continuity in returns for EPF members and provides certainty to millions of salaried employees who rely on the retirement savings scheme for long-term wealth accumulation.