EPFO Sets 8.25% Interest Rate for EPF Deposits in Fiscal Year 2025-26

EPFO Sets Interest Rate for 2025-26 at 8.25 Percent

On March 2, 2026, the Employees' Provident Fund Organisation (EPFO) announced the interest rate for employees' provident fund (EPF) deposits for the financial year 2025-26 at 8.25 percent. This rate applies to contributions made between April 1, 2025, and March 31, 2026, and maintains the same rate for the second year in a row.

EPFO Interest Rate Trend

Over the past decade, the interest rate on EPF deposits has experienced a slight decline. In 2015-16, subscribers earned 8.8 percent on their savings, while for 2025-26, the rate has been set at 8.25 percent. This represents a decrease of 0.55 percentage points over ten years, indicating a gradual decline in returns on the scheme.

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Historical Interest Rate

In February 2025, the EPFO retained the 8.25 per cent interest rate for the 2024-25 fiscal year. For 2023-24, the EPFO increased the interest rate slightly to 8.25 per cent, up from 8.15 percent in 2022-23. The interest rate on post-retirement deposits for 2021-22 was lowered to 8.10 per cent, an over-four decade low, from 8.5 percent in 2020-21.

Approval Process

After the Central Board of Trustees (CBT) decision, the interest rate on EPF deposits for 2025-26 will be sent to the Ministry of Finance for approval. Once the government ratifies it, the interest rate for 2025-26 will be credited to the accounts of over 7 crore EPFO subscribers. The EPFO announces the interest rate after approval by the government through the finance ministry.

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