The Employees’ Provident Fund Organisation’s (EPFO) Central Board of Trustees (CBT) approved an 8.25% interest rate on EPF deposits for FY2025–26. This holds the rate steady for a third straight year: it was raised from 8.15% in 2022–23 to 8.25% in FY2023–24, and remained at that level in FY2024–25. The CBT meeting, chaired by Labour Minister Mansukh Mandaviya, decided to send the proposed rate to the finance ministry for concurrence; after ratification the 8.25% rate will be officially notified and credited into subscribers’ accounts.

Key Highlights

• EPFO retains 8.25% interest rate on provident fund deposits for FY 2025-26.
• Over seven crore subscribers to benefit from steady, competitive retirement savings returns.

The 239th Central Board of Trustees meeting of EPFO, chaired by Labour Minister Mansukh Mandaviya (pictured), fixed the 8.25% rate. The decision will benefit over seven crore active members and nearly 30–31 crore total subscribers, making it one of the highest returns offered by any government savings scheme. The Labour Ministry praised EPFO’s financial stewardship, noting it has “maintained strong financial discipline, ensuring stable and competitive returns without straining the interest account”. EPFO added that this payout “benefits crores of workers by strengthening their retirement security” and reaffirmed its commitment to delivering “prudent, sustainable, and attractive returns” compared to other investment options.

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Economic Context and Outlook

The decision comes amid softer equity markets and easing bond yields, but EPFO’s healthy corpus and ETF gains have kept it on solid footing. For April 2025–February 2026, EPFO’s income is estimated at about ₹1.40 lakh crore, implying an interest shortfall of roughly ₹944 crore at 8.25% – a gap easily covered by the ₹5,480 crore surplus carried over from FY2024–25. Officials note that robust ETF and bond returns have underpinned this cushion. Looking ahead, the board has asked IIM Kozhikode to examine creating an “interest stabilisation reserve” to help buffer returns during volatile market periods,