The Employees’ Provident Fund Organisation has announced a key update for crores of salaried employees.
The interest rate on EPF deposits has been fixed at 8.25% for the financial year 2025–26.
The decision was taken at a meeting of the Central Board of Trustees (CBT), the highest decision-making body of the EPFO, chaired by Union Labour and Employment Minister Mansukh Mandaviya.
Despite global economic challenges, the government said the EPFO remains financially strong and continues to deliver stable returns to account holders.
8.25% Interest Rate Confirmed for FY 2025–26
The 8.25% interest rate means subscribers will continue to earn solid returns on their Provident Fund savings.
The Ministry said this move reflects the EPFO’s strong financial position and its ability to safeguard retirement savings even during uncertain global conditions.
For millions of employees, this brings clarity and reassurance about their long-term savings.
One-Time Amnesty Scheme for Trusts
One of the major announcements was a six-month amnesty scheme.
This scheme is meant for trusts covered under the Income Tax Act but not yet registered under the EPF Act. The aim is to bring more companies and trusts under the official regulatory system and protect employees’ interests.
Under this scheme:
Penalties and interest charges will be waived.
This benefit applies to trusts already offering benefits equal to or better than legal EPF requirements.
In simple terms, compliant trusts get a chance to regularise their status without financial penalties.
New Social Security Schemes Approved
The board also approved new schemes under the Social Security Code, 2020.
These include:
EPF Scheme 2026
EPS 2026
EDLI Scheme 2026
These new schemes will replace the current ones and provide a stronger legal framework for PF, pension, and insurance benefits.
The goal is to make the transition from old rules to new regulations smooth and structured.
Relief for Inactive and Small Accounts
There’s good news for people with inactive PF accounts.
The EPFO will launch a pilot project to settle long-pending accounts automatically.
Accounts with unclaimed balances of ₹1,000 or less will be auto-settled first.
If the pilot is successful, this system will later be extended to accounts with balances above ₹1,000.
This move is expected to reduce pending cases and make the system more efficient.
New Investment Monitoring Plan
The board has also approved a new Standard Operating Procedure (SOP) to monitor EPFO investments.
This step is aimed at increasing transparency and improving oversight of how retirement funds are managed.
Overall, the latest decisions signal a push toward stronger regulation, better services, and more secure retirement savings for millions of EPF subscribers.
