EPFO keeps interest rate unchanged for third year in a row at 8.25% for FY26

2 min readUpdated: Mar 2, 2026 04:10 PM IST

The Central Board of Trustees of the Employees’ Provident Fund Organisation (EPFO), headed by Union Labour and Employment Minister Mansukh Mandaviya, in its 239th meeting held Monday recommended keeping the interest rate for financial year 2025-26 unchanged from previous year at 8.25% for its over 7.8 crore contributing subscribers. This is the third year in the row that EPF interest rate has been kept unchanged at 8.25%.

The decision to maintain the interest rate comes in a year when elections are going to be held in four states and one UT. The previous hike in EPF interest rate to 8.25% was announced in 2024 for the financial year 2023-24 from 8.15% in 2022-23.

The EPFO’s investment returns are linked to the yield on government securities and equity returns. The decision to retain the interest rate was taken as it was felt there could be volatility in financial markets.

By keeping the interest rate at 8.25%, the retirement fund body is estimated to face a loss of Rs 650 crore, a CBT member said, adding that it would be adjusted against previous year’s surplus of Rs 5,300 crore.

The Ministry of Labour and Employment will now send the interest rate recommendation of 8.25 per cent for 2024-25 to the Ministry of Finance for ratification. After the ministry’s consent to the interest rate, the EPFO would credit the rate of interest for the current fiscal to the EPF subscribers.

EPFO Interest Rate — Year-wise History (2010–2026)

Employees’ Provident Fund Organisation — Annual interest rates on PF deposits

9.50%
Highest Rate (2010-11)

8.10%
Lowest Rate (2021-22)

8.25%
Current Rate (2024-25)

Year	Interest Rate	Trend
2010-11	9.50%	—
2011-12	8.25%	▼
2012-13	8.50%	▲
2013-14	8.75%	▲
2014-15	8.75%	▶
2015-16	8.80%	▲
2016-17	8.65%	▼
2017-18	8.55%	▼
2018-19	8.65%	▲
2019-20	8.50%	▼
2020-21	8.50%	▶
2021-22	8.10%	▼
2022-23	8.15%	▲
2023-24	8.25%	▲
2024-25	8.25%	▶
2025-26 PENDING	8.25%	▶

* 2025-26 rate of 8.25% recommended by Central Board of Trustees (CBT) — pending approval by Ministry of Finance

Aanchal Magazine is a Deputy Associate Editor with The Indian Express, serving as a leading voice on the macroeconomy and fiscal policy. With 15 years of newsroom experience, she is recognized for her ability to decode complex economic data and government policy for a wider audience.
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