Will your EPF returns drop? EPFO to decide FY26 interest rates soon

The Employees’ Provident Fund Organisation (EPFO) is set to take a key decision on the Employees’ Provident Fund (EPF) interest rate for the 2025-26 financial year in March, when its Central Board of Trustees (CBT) meets for its final meeting of 2026.

Last year, the EPF interest rate was retained at 8.25 per cent. This time, reports suggest the rate could be reduced by 5 to 20 basis points, bringing it down to around 8 to 8.20 per cent, reported outlook money. However, another view emerging from official sources indicates the rate may remain unchanged, especially with elections due in several states.

Before the CBT meeting, the Finance, Investment and Audit Committee (FIAC) will review investment returns and suggest rates. The CBT will then forward its recommendation to the Finance Ministry for approval, a process that usually takes a few months.

Once cleared, the interest is credited to EPF accounts, typically between June and July, as seen last year.

The final decision will impact over 7 crore EPF subscribers across the country, making the March meeting closely watched by salaried employees.