There is important news for employees. The Employees’ Provident Fund Organisation (EPFO) has recommended keeping the EPF interest rate at 8.25% for the financial year 2025–26.
This means EPF account holders will receive the same interest rate for the third year in a row.
This decision was taken during the 239th meeting of the Central Board of Trustees (CBT) held in New Delhi.
What the Government Said
The meeting was chaired by Union Labour and Employment Minister Mansukh Mandaviya. Minister of State Shobha Karandlaje, Labour Secretary Vandana Gurnani, and EPFO Central Commissioner Ramesh Krishnamurthy were also present.
The board has recommended the 8.25% rate to the Finance Ministry. After the ministry gives its approval, the same interest rate will be applied to the EPF accounts of more than 7 crore members across India.
How EPF Interest Is Calculated
EPF interest is calculated every month on the balance in your account. However, the total interest is credited once at the end of the financial year.
So, if you make regular contributions, you will see the full year’s interest added at one time. But if an EPF account stays inactive for 36 months, it becomes dormant and stops earning interest.
EPF Interest Rate Trend Over the Years
The EPF interest rate has changed several times in recent years.
2023–24: Increased from 8.15% to 8.25%
2021–22: Dropped to 8.10% (lowest in nearly 40 years)
1977–78: Interest rate was 8%
Because of these fluctuations, keeping the rate steady at 8.25% is seen as a relief for employees. Experts say this rate is balanced considering the current economy and investment returns.
It does not put too much pressure on EPFO funds while still giving employees better and safer returns than bank fixed deposits.
What This Means for EPF Members
For now, there is no change in the EPF interest rate. After final government approval, EPF accounts will continue to earn 8.25% interest in 2025–26.
So, it is beneficial for members to keep contributing regularly and keep their EPF accounts active to continue earning interest.
