EPF Interest Rates: Will EPFO Cut Interest Rates In Its Upcoming CBT Meeting In March?

The Central Board of Trustees (CBT) of the Employees’ Provident Fund Organisation (EPFO) will hold its last meeting for 2026 in March this year. The upcoming meeting of the CBT holds significance because it will decide and recommend the EPF rates to the finance ministry for the current financial year (2025-26). Last year, a CBT meeting was held on February 28, 2025, in which it was decided to retain the same interest rate as earlier at 8.25 per cent.

 However, this time, the interest rates may be reduced by 0.05 per cent (5 basis points) to 0.20 per cent (20 basis points). If this happens, the EPF rates would go down from the prevailing 8.25 per cent to 8-8.20 per cent. According to the report, the possible reason could be to avoid corpus depletion.

However, citing undisclosed people familiar with the discussions, the Economic Times reported that there are chances that the rates may remain unchanged, considering the upcoming elections in a couple of states, such as West Bengal, Kerala, Tamil Nadu, Assam, and Puducherry. So, the rates may remain unchanged as well at 8.25 per cent for this year.

Reportedly, the Finance, Investment, and Audit Committee (FIAC) of the EPFO will meet in February and suggest the rates to CBT in the March meeting. CBT will discuss the suggestions and send its recommendations to the Ministry of Finance for approval. Historically, it takes at least 3-4 months before the recommendations are approved.

How Are EPF Interest Rates Determined

Every year in February or March, the CBT meeting is held to discuss and determine EPF rates. It takes into account the return on EPF investments, and inflation, among others. Reserve Bank of India (RBI) Governor Sanjay Malhotra, on the concluding day of the monetary policy committee (MPC) meeting on February 6, 2026, projected the inflation for FY26 at 2.10 per cent, well within the tolerance band of 2-6 per cent. The CBT will now factor in this data in determining EPF interest along with other economic factors.

The Finance Ministry will evaluate the CBT’s recommendations. It may accept the recommendations as they are or may raise questions or suggest some changes before approval. Once the interest rate is approved, it is calculated for accountholders, adjustments are made in the accrued amounts, and then the interest amount is credited to the subscribers’ EPF account. The entire process takes time, and that’s why the interest is credited, typically in the middle of a financial year. In 2025, interest was credited around June and July.

Here is the detail of the EPF interest rates over the last 10 years

2012-13 8.50%

2013-14 8.75%

2014-15 8.75%

2015-16 8.80%

2016-17 8.65%

2017-18 8.55%

2018-19 8.65%

2019-20 8.50%

2020-21 8.50%

2021-22 8.10%

2022-23 8.15%

2023-24 8.25%

2024-25 8.25%

Source: EPFO 

Where Does EPFO Invest Funds?

The funds collected by the EPFO are invested in both debt and equities, as per the investment pattern notified by the Ministry of Labour and Employment. According to which, the investment in equity and related investments can be in the range of 5-15 per cent. In 2015, EPFO started with 5 per cent exposure in equity through exchange-traded funds (ETFs), which in 2017 was increased to 15 per cent. The funds are not invested in individual stocks. 

There are over 70 million EPF subscribers who eagerly look for EPF rates. For some time, EPFO has been taking measures to make the EPF fund easily accessible to subscribers, including Unified Payments Interface (UPI)-based EPF withdrawals which are likely to be introduced in the coming financial year.