EPF interest rate stays at 8.25% for FY26; Here’s what members should know

New Delhi: The Centre has approved an interest rate of 8.25 per cent on Employees' Provident Fund (EPF) deposits for the financial year 2025-26, clearing the way for the Employees' Provident Fund Organisation (EPFO) to credit interest into the accounts of more than seven crore contributing subscribers.

According to reports, the Finance Ministry has given its concurrence to the 8.25 per cent rate recommended by the Central Board of Trustees (CBT), the EPFO's highest decision-making body.

The interest amount is expected to be credited to subscribers' accounts later this month.

The CBT, chaired by Union Labour Minister Mansukh Mandaviya, had decided on March 2, 2026, to retain the EPF interest rate at 8.25 per cent for FY26.

The decision marks the third consecutive year that the retirement fund body has maintained the same interest rate for its subscribers.

Following the CBT meeting, the proposal was sent to the Finance Ministry for approval, as the government acts as the guarantor of EPF deposits. With the ministry now clearing the proposal, the EPFO is expected to begin the process of crediting interest to members' accounts.

EPFO prepares for digital overhaul

The approval comes as the EPFO prepares to introduce a series of digital reforms through its proposed EPFO 3.0 platform.

Among the planned changes is a facility that would allow subscribers to withdraw provident fund money through Unified Payments Interface (UPI) applications and EPF-linked automated teller machines (ATMs).

According to reports, the facility is being developed in collaboration with the National Payments Corporation of India (NPCI) and is likely to be launched soon.

Testing of the system has already been completed, while an official announcement on its rollout is awaited.

UPI, ATM-based PF withdrawals planned

Under the proposed mechanism, subscribers may be able to instantly withdraw up to 75 per cent of their EPF balance directly into their bank accounts using UPI-enabled platforms and ATM access.

According to reports, the new system is aimed at simplifying the withdrawal process and reducing the time taken to access provident fund savings.

Experts cited in reports said the move could help cut paperwork and processing delays while improving transparency and accountability in PF withdrawals.