New Delhi: The central government has clarified in Lok Sabha that there is no proposal at present to raise the Employees’ Provident Fund (EPF) interest rate to 10 percent. Labour and Employment Minister Shobha Karandlaje said that no formal request has been received from labour unions seeking such an increase.
The statement came in response to an unstarred question on March 30, 2026, raised by Member of Parliament Vijayakumar alias Vijay Vasanth. The clarification puts to rest speculation about a sharp hike in EPF returns.
No Proposal For 10 percent EPF Rate
Karandlaje clearly stated that there have been no official representations from labour unions demanding that the EPF interest rate be increased to 10 percent. This means that, at present, there is no active discussion or proposal under consideration for such a hike.
The government’s response indicates that any change in EPF interest rates depends on formal processes and recommendations, not speculation or informal demands.
How EPF Interest Rate Is Decided?
The minister explained that the EPF interest rate is not fixed arbitrarily. It depends on the actual income earned by the EPF corpus. This means the returns generated from investments made using EPF funds play a key role in deciding the interest rate.
She added that the rate is recommended by the Central Board of Trustees (CBT) of EPF. This is a tripartite body that includes representatives from the government, employers, and employees. The final rate is decided after careful evaluation of earnings and financial conditions.
Current EPF Interest Rate
At present, the EPF interest rate stands at 8.25 percent. This was last revised for the financial year 2022–23. Over the years, EPF rates have seen gradual changes based on economic conditions and fund performance.
For example, the rate was as high as 9.50 percent in 2010–11, while it has stayed mostly in the range of 8 percent to 8.75 percent in recent years. The rate dropped to 8.10 percent in 2021–22 before being slightly increased.
No Interest Loss On Delays
The Employees’ Provident Fund Organisation (EPFO) has clarified that members do not lose interest if there is a delay in crediting interest to their accounts. Interest is calculated and credited fully, even if there is a timing delay.
In addition, EPFO amended its rules in November 2024 to further protect members. As per the updated rule, EPF subscribers now earn interest on their balance till the date of settlement of claims. Earlier, interest was calculated only till the previous month.
Easy Way To Check EPF Balance
EPFO has introduced a ‘Passbook Lite’ feature on its member portal. This allows users to quickly check their EPF balance, recent contributions, and withdrawals.
Members can log in using their Universal Account Number (UAN), go to the ‘View’ section, and select ‘Passbook Lite’ to see the last five contributions. For detailed information, they can access the full passbook.
