The Central Government has approved an interest rate of 8.25 percent on Employees’ Provident Fund (EPF) deposits for the financial year 2025-26. This decision will benefit over 7 crore subscribers of the Employees’ Provident Fund Organisation (EPFO). Interest will be credited to EPF accounts based on this approved rate, further strengthening the retirement savings of employees.
According to reports, the Ministry of Finance has granted its approval to the 8.25 percent interest rate proposed by the Central Board of Trustees (CBT), the apex decision-making body of the EPFO. Following this, the process of crediting interest to EPF accounts can commence. It is anticipated that the interest amount could be credited to members’ accounts by the end of this month.
The decision to maintain the EPF interest rate at 8.25 percent for the financial year 2025-26 was taken during a CBT meeting held on March 2, 2026, chaired by the Union Minister for Labour and Employment, Mansukh Mandaviya. This marks the third consecutive year that the EPFO has kept the interest rate unchanged for its members.
After the CBT’s decision, the proposal was forwarded to the Ministry of Finance for final approval, as EPF deposits carry a government guarantee. With the Ministry’s approval now secured, the EPFO can initiate the formal process of crediting interest to members’ accounts. This decision comes at a time when the EPFO is preparing to implement comprehensive digital reforms under its proposed ‘EPFO 3.0’ platform. These reforms aim to make services simpler, faster, and more transparent.
According to reports, the EPFO is set to launch a facility allowing members to withdraw funds from their provident fund accounts using Unified Payments Interface (UPI) apps and ATM networks linked to the EPF. The testing process for this system—developed in collaboration with the National Payments Corporation of India (NPCI)—has been completed, and it is expected to be launched soon. An official announcement regarding this is likely to be made soon.
Under the proposed system, members will be able to instantly transfer up to 75 percent of their EPF balance directly to their bank accounts using UPI-enabled platforms and ATM facilities. Experts believe that this initiative will significantly reduce paperwork and the time required for claim settlements. Additionally, it will enhance transparency, accountability, and convenience in the PF withdrawal process.
