Government Approves 8.25% Interest Rate for EPF Deposits in 2025-26: What You Need to Know

EPF Interest Rate Confirmed for 2025-26

New Delhi: The government has officially approved an interest rate of 8.25% for employees' provident fund (EPF) deposits for the financial year 2025-26. This decision is expected to benefit over seven crore members contributing to the fund, with credits anticipated to occur this month, according to a reliable source.

The Employees' Provident Fund Organisation (EPFO) sets the interest rate, which requires ratification from the government via the Finance Ministry.

As per the source, the Finance Ministry has agreed to the 8.25% interest rate determined by the Central Board of Trustees (CBT), which is the highest decision-making authority within the EPFO.

On March 2, 2026, during a meeting led by Union Labour Minister Mansukh Mandaviya, the CBT decided to maintain the 8.25% interest rate for the third consecutive year.

Following this, the proposal was forwarded to the Finance Ministry for approval, as the Government of India guarantees the EPF.

The source indicated that after thorough review, the Finance Ministry has sanctioned the proposal, and the EPFO is expected to credit the 8.25% interest into subscribers' accounts this month, as directed by the labour ministry.

Additionally, the EPFO has developed a new system that allows for immediate crediting of interest to subscribers' accounts.

In February of the previous year, the EPFO had also retained the 8.25% interest rate for the fiscal year 2024-25.

In 2024, the EPFO slightly increased the interest rate to 8.25% for 2023-24, up from 8.15% in 2022-23.

In March 2022, the EPFO reduced the interest on post-retirement deposits for 2021-22 to a record low of 8.10%, down from 8.5% in 2020-21.

The 8.10% rate for 2020-21 was the lowest since 1977-78, when it was set at 8%.

In March 2020, the EPFO had lowered the interest rate on provident fund deposits to a seven-year low of 8.5% for 2019-20, down from 8.65% for 2018-19.

Historically, the EPFO provided an interest rate of 8.65% in 2016-17 and 8.55% in 2017-18, with a slightly higher rate of 8.8% in 2015-16.

The retirement fund organization offered an 8.75% interest rate in both 2013-14 and 2014-15, exceeding the 8.5% rate for 2012-13.

The interest rate was set at 8.25% in 2011-12.