EPFO retains 8.25% interest rate on employees' provident fund deposits for 2025-26

New Delhi: The Employees’ Provident Fund Organisation (EPFO) on Monday fixed the interest on provident fund deposits for 2025-26 at 8.25%, retaining the rate for the second consecutive year.

The interest rate would be officially notified by the Ministry of Finance, following which EPFO would credit it into the subscribers’ account. The decision was taken at a meeting of the Central Board of Trustees of the EPFO chaired by Labour Minister Mansukh Mandaviya here.

"After due deliberations, the CBT recommended 8.25 % annual rate of interest to be credited on EPF accumulations in members’ accounts for the financial year 2025-26," an official statement said.

Despite global uncertainties, it said, the EPFO has maintained strong financial discipline, ensuring stable and competitive returns without straining the interest account.

"The decision benefits crores of workers by strengthening their retirement security, while reaffirming EPFO’s commitment to safeguarding contributions and delivering prudent, sustainable, and attractive returns compared to other similar investment avenues," it said.

EPFO has been able to declare an interest rate of above 8% for the past several years owing to good returns given by ETF and other investments. The decision reflects the strong credit profile of EPFO’s investment portfolio and its sustained ability to deliver competitive returns to its members, it added.

In 2024-25, the EPFO had increased the interest rate marginally to 8.25% from 8.15% in 2022-23. It had lowered the interest on post-retirement deposits for 2021-22 to an over four-decade low of 8.10% -- the lowest since 1977-78 when the rate stood at 8% -- from 8.5% in 2020-21.

EPFO in 2024-25

Total Provident Fund Contributions: Rs 3,35,628.81 crore

New establishments brought under coverage: 2,86,894 

New Members Enrolled: 1,22,89,244 

* Served 81,48,490 pensioners Settled 6,01,59,608 claims, including 69,983 EDLI claims

* Grievances

Redressed: 17,33,046 

Calls Attended: 39,74,501 

* Rate of interest on EPF deposits: 8.25%

Source: Ministry of Labour and Employment