EPFO interest hike likely: How much you’ll earn, when it’ll be credited, and how to check

New Delhi: The Employees' Provident Fund Organisation (EPFO) is reportedly considering a major reform that could benefit millions of private-sector employees. According to reports, the body is evaluating a proposal to increase the salary threshold for mandatory EPF and Employees’ Pension Scheme (EPS) enrollment, currently set at ₹15,000 per month.

If the revision is approved, more employees will qualify for provident fund and pension benefits, potentially boosting retirement savings and monthly pension amounts. At present, employees who contribute to the EPS for at least 10 years become eligible to receive a pension after turning 58, in addition to earning annual interest on their PF balance.

How PF contributions are split

Under the existing structure, 12% of an employee’s basic salary and dearness allowance is deducted every month as Provident Fund contribution. The employer deposits this amount with the Regional PF Commissioner, with the contribution split as follows:

8.33% goes to the pension fund, and

3.67% goes to the provident fund.

The pension component of the employer’s contribution is capped to ensure long-term sustainability of the fund.

How often is PF interest credited?

EPFO credits interest once every financial year. For 2024-25, the approved interest rate stands at 8.25%, unchanged from the previous year.

The rate for 2025-26 is expected to be finalised early next year, following the EPFO’s Central Board of Trustees meeting and approval from the Finance Ministry.

Interest rate for 2025-26 May rise to 9.25%

According to reports, the government may announce an interest rate of up to 9.25% for the 2025-26 financial year, a significant 1% jump from the current rate. A final decision is likely to be taken at the next Central Board of Trustees meeting, expected in January.

If approved, more than 7 crore EPF members will benefit from the higher interest payout.

What the revised rate means for employees

PF balance of ₹6 lakh → Approx. ₹55,000 interest at 9.25%

A higher rate would offer relief to employees dealing with rising living costs and inflation.

How to check your PF balance

Employees can easily check whether interest has been credited to their PF accounts using any of the following methods:

Missed Call Service

Give a missed call to 011-22901406 from your UAN-registered number. You will receive an SMS with your latest balance.

Umang App

Log in to the Umang app and access the EPFO service section.

SMS

Send an SMS from your registered mobile number to the designated EPFO number (details available on the EPFO portal).

Visit an EPFO Office

Employees may also visit their nearest EPFO office to obtain their updated passbook.