Mumbai: The Employees' Provident Fund Organisation (EPFO) has fixed the interest rate on Employees’ Provident Fund (EPF) deposits at 8.25 percent for 2025-26. The rate remains unchanged for the second year in a row.
The decision was taken by the Central Board of Trustees (CBT), the apex decision-making body of EPFO, at its meeting on Monday.
Government Approval Needed
After the CBT decision, the proposed interest rate will now be sent to the Ministry of Finance for approval. Once the government gives its nod, the interest amount will be credited to the accounts of over seven crore EPFO subscribers.
EPFO announces the rate, but it is credited only after formal ratification by the finance ministry.
Recent Interest Rate Trend
The 8.25 percent rate was also offered in 2024-25. In 2023-24, EPFO had slightly increased the interest rate to 8.25 percent from 8.15 percent in 2022-23.
Earlier, in March 2022, EPFO had reduced the interest rate for 2021-22 to 8.10 percent, which was a four-decade low. The 8.10 percent rate was the lowest since 1977-78, when the interest rate stood at 8 percent.
In March 2020, EPFO had lowered the interest rate to 8.5 percent for 2019-20 from 8.65 percent in 2018-19.
Historical Interest Rates
Over the years, EPFO has revised rates based on earnings and economic conditions. The interest rate was:
- 8.65 percent in 2016-17
- 8.55 percent in 2017-18
- 8.8 percent in 2015-16
- 8.75 percent in 2013-14 and 2014-15
- 8.5 percent in 2012-13
- 8.25 percent in 2011-12
The latest decision ensures stability for EPF subscribers and provides clarity for long-term retirement savings planning.
What It Means For Subscribers?
By keeping the rate at 8.25 percent, EPFO has provided consistency to millions of salaried employees. The move signals stable returns on retirement savings, even amid changing economic conditions.
For subscribers, this means their provident fund deposits will continue to earn 8.25 percent interest in 2025-26, subject to government approval.
