Govt Ratifies 8.25 Per Cent EPF Interest Rate For 2025-26, Interest Likely To Be Credited From This Month

The Government of India has officially ratified the interest rate of 8.25 per cent on Employee Provident Fund (EPF) deposits for the financial year 2025-26. The decision, which has already received concurrence from the Ministry of Finance, is set to benefit over seven crore EPF subscribers. The interest earnings are likely to be credited to subscribers’ accounts in the current month.

The ratification process is a standard requirement where the Employees’ Provident Fund Organisation (EPFO) provides interest rates only after securing approval from the financial ministry, which acts as the guarantor of the fund.

In March this year, the Central Board of Trustees (CBT), which serves as the apex decision-making body for the EPFO, recommended an 8.25 per cent rate. It fixed the rate at 8.25 per cent, consecutively the third time. Once the proposal was vetted and approved by the finance ministry, the labour ministry directed the EPFO to proceed with crediting subscribers’ bank accounts with the interest amount.

Under the modern technological framework, the interest on the EPF is expected to be credited into subscribers’ accounts without the delays seen in previous years.  

In the last decade, the rates have fluctuated significantly. Here is the historical data for over a decade:

After a sharp decline in 2021-22 to 8.10 per cent, which was the lowest since 1977-78, the rate has gone up gradually. And for the last financial years, it has remained unchanged at 8.25 per cent.

In a separate development, the EPFO is scheduled to disburse Rs 2,400 crore worth of benefits under the Pradhan Mantri Viksit Bharat Rojgar Yojana (PMVBRY). The disbursement ceremonies will be held in Nagpur, Chandrapur, and New Delhi on June 19.  The scheme provides incentives to first-time employees and offers financial support to employers to generate jobs and expand their workforce. This scheme is aimed at promoting formal employment and providing long-term security for young workers entering the formal workforce.