Govt ratifies 8.25 pc EPF interest rate for FY26; credit to over 7 crore subscribers likely soon
New Delhi, June 18
The government has ratified an interest rate of 8.25 per cent on Employees' Provident Fund deposits for the financial year 2025-26, paving the way for the credit of interest into the accounts of more than seven crore contributing subscribers of the Employees' Provident Fund Organisation.
According to reports, the Finance Ministry has approved the 8.25 per cent interest rate recommended by the Central Board of Trustees (CBT), the apex decision-making body of the EPFO.
The interest amount is expected to be credited to subscribers' accounts later this month.
The CBT, chaired by Union Labour Minister Mansukh Mandaviya, had decided on March 2, 2026, to retain the EPF interest rate at 8.25 per cent for FY26.
This marks the third consecutive year that the retirement fund body has maintained the same rate for its subscribers.
Following the CBT's decision, the proposal was sent to the Finance Ministry for concurrence, as the Government acts as the guarantor of EPF deposits.
With the ministry now giving its approval, EPFO expected to begin the process of crediting the interest to members' accounts.
The development comes at a time when EPFO is preparing to roll out major digital reforms under its upcoming EPFO 3.0 platform.
The organisation is expected to introduce a facility that will allow subscribers to withdraw provident fund money through Unified Payments Interface (UPI) applications and EPF-linked ATMs.
According to reports, the new facility, being developed in collaboration with the National Payments Corporation of India, is likely to be launched soon.
Testing of the system has already been completed, and an official announcement regarding the rollout is expected soon.
Under the proposed system, subscribers may be able to instantly withdraw up to 75 per cent of their EPF balance directly into their bank accounts using UPI-enabled platforms and ATM access.
Experts believe the move will significantly reduce paperwork and processing delays while improving transparency and accountability in PF withdrawals.
— IANS
Reader Comments
Finally some good news for middle-class families! 8.25% is much better than bank FDs these days. But will the UPI withdrawal facility actually work smoothly in tier-2 cities? Let's wait and see.
As someone working in the private sector, the 8.25% rate is decent, but I wish the government would also consider reducing the mandatory PF contribution for employees. More flexibility would help in times of need.
Great to hear about the UPI-linked withdrawal! As a young professional, I always find the current process too bureaucratic. Instant withdrawals up to 75% via UPI would be a game-changer for emergencies. Hope it launches soon! 🚀
Third consecutive year at same rate shows stability, but inflation is still high. 8.25% is not enough to beat inflation. The government should focus on linking EPF returns to market performance or inflation index. Just my two paise.
Good for workers, but I'm more interested in the digital reforms. The EPFO 3.0 platform with UPI integration sounds promising. Reducing paperwork and delays is exactly what we need in India's growing digital economy. Well done, EPFO!
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