EPFO keeps EPF interest rate at 8.25% for FY26: What it means for your savings

EPFO keeps EPF interest rate at 8.25% for FY26: What it means for your savings Tezzbuzz | 2026-03-02T20:24:21+08:00

New Delhi: The Employees’ Provident Fund Organization (EPFO) has decided to maintain the 8.25 percent interest rate on Employees’ Provident Fund (EPF) deposits for the financial year 2025-26, a report said. The EPF has retained the rate for the second consecutive year. The decision to keep the Provident Fund interest rate unchanged was taken in a meeting of the Central Board of Trustees (CBT), the highest policy-making body of the EPFO.

How EPFO decides EPF Interest Rate

The proposal will be sent to the Finance Ministry for the official green signal. After receiving the approval from the government, this interest rate will be implemented in the accounts of more than 7 crore EPF subscribers across the country.

The Employees’ Provident Fund Organisation, in 2024, hiked the interest rate to 8.25 per cent for 2023-24, while it was 8.15 per cent in 2022-23. In March 2022, the retirement fund body slashed the interest on PF deposits for 2021-22 to an over four-decade low of 8.10 per cent, from 8.5 per cent in 2020-21.

Notably, the 8.10 per cent rate for 2020-21 was the lowest since 1977-78, when the rate stood at 8 per cent.

“The EPFO’s apex decision making body Central Board of Trustees (CBT) has decided to provide 8.25 per cent rate of interest on EPF for 2025-26 at its meeting on Monday,” the source said.

The current decision clearly demonstrates the EPFO’s strategy of maintaining stable returns so that investors continue to receive assured and secure income. Experts believe that this move by the EPFO signals stability for employees despite global economic uncertainty and fluctuating interest rates.

EPF interest rate history

2023-24: 8.25%
2022-23: 8.15%
2021-22: 8.10% (four-decade low)
2020-21: 8.50%
2019-20: 8.50% (7-year low at that time)
2016-17: 8.65%
2015-16: 8.80%
2013-14 & 2014-15: 8.75%

How is the EPF interest rate decided?

The EPFO proposes interest rates every financial year to the government based on the returns from its investments and market conditions. After CBDT approval, the proposed rate are sent to the Finance Ministry for the final approval.