EPF Rates Unchanged At 8.25 Per Cent For 2025-26, Announces EPFO

The Employees’ Provident Fund Organisation (EPFO) kept the interest rate unchanged at 8.25 per cent for the financial year 2024-25. This is the second consecutive year when the rates remained at 8.25 per cent. The rates were approved by the central Board of Trustees (CBT) in its meeting today, on March 2, 2026, per PTI. The CBT, in its meeting on March 2, 2026, decided to approve the recommendations given by the Finance, Investment, and Audit Committee (FIAC) in February 2026. The approved rates will now be sent for approval to the Ministry of Finance, and only after their approval, will be credited to the beneficiaries' (EPF subscribers) accounts.

After the pandemic in 2020, the rates were drastically reduced from 8.50 per cent in the previous year to 8.10 per cent for 2021-22. However, in the last three financial years, the rates have improved from that low level.

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 website

While speculations were that the rate would remain at the same level or would reduce by 0.05 to 0.20 per cent, these are recommended to be fixed at the current level. The CBT recommended keeping the rates at the same level, at 8.25 per cent. However, it is not yet final for crediting the accounts. This may still be changed. The Ministry of Finance will evaluate the recommended rate. It may accept the rate as it is or may suggest changes in it before final approval for crediting the accounts of EPF subscribers.  

The EPFO’s apex body, the CBT, manages the EPFO funds, their investment, and distribution. So, while recommending the rates, it takes into account the inflation rate, return of EPFO fund investments, and other factors. The EPFO funds investment is based on the set pattern, notified by the Ministry of Labour and Employment, where a maximum of 15 per cent only can be invested in equities and the remaining in debt instruments. The funds can be invested in equities through exchange-traded funds (ETFs). Investment in individual stocks is not allowed.  

Once the Finance Ministry approves the rates, the interest will be credited, which typically takes around 3-4 months after the final approval by the Ministry.

As EPFO plans to launch Unified Payment Interface (UPI) led withdrawal from the next financial year, the employees would soon be able to withdraw EPF funds directly from their bank accounts.