Emerging
Jun 18, 2026 Major2
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Government Approves 8.25% EPF Interest Rate for FY26, Crediting Expected This Month
The Indian government has formally approved an 8.25% interest rate on EPF deposits for the 2025-26 fiscal year, following clearance from the finance ministry. The rate, recommended by the CBT in March 2026, will be credited to over seven crore subscribers' accounts this month, marking the third consecutive year at this level.
Quick Facts
Who
Government of India
What
ratified 8.25% EPF interest rate for 2025-26
When
June 18, 2026
Where
India
- ratified 8.25% EPF interest rate for 2025-26
- credited interest to subscribers' accounts
- cleared the rate by finance ministry
- recommended rate by CBT
- Government of India
The Indian government has formally ratified an 8.25% interest rate on Employees' Provident Fund (EPF) deposits for the 2025-26 fiscal year, clearing the way for over seven crore subscribers to receive the interest credit this month, officials said on June 18, 2026.
The finance ministry gave its concurrence to the rate, which was recommended by the Central Board of Trustees (CBT) — the apex decision-making body of the Employees' Provident Fund Organisation (EPFO) — during a meeting on March 2, 2026, chaired by Union Labour Minister Mansukh Mandaviya. The government serves as the guarantor for EPF deposits, necessitating final clearance from the finance ministry.
With this approval, the EPFO will now process the crediting of interest into subscribers' accounts using its new digital ecosystem, which is designed to ensure immediate transmission following government clearance. The interest rate of 8.25% has been maintained for the third consecutive year, providing stability to salaried employees who rely on EPF as a key long-term retirement savings instrument.
The EPFO had previously retained the 8.25% rate for 2024-25 and raised it to 8.25% for 2023-24 from 8.15% in 2022-23. In 2021-22, the rate had dropped to 8.10%, the lowest level in over four decades, before being increased marginally. Historical rates include 8.5% in 2020-21 and 2019-20, 8.65% in 2018-19 and 2016-17, and 8.8% in 2015-16.
Subscribers do not need to take any action to receive the credit; the interest amount will be automatically reflected in their EPF accounts. Members can check the updated balance through the EPFO portal, the UMANG app, or other official channels after the credit is completed.
Why This Matters
For 70+ million salaried employees in India, this approval guarantees a stable 8.25% return on their EPF savings for the third year in a row, reinforcing EPF as a reliable retirement savings vehicle. Subscribers should verify their account balances after the credit and plan their finances knowing the predictable return. The government's digital ecosystem enables faster processing, so delays are unlikely.
Timeline & Sources
Mar 2, 2026
WireCBT meeting chaired by Labour Minister Mansukh Mandaviya recommends 8.25% rate
Jun 18, 2026
WireFinance Ministry ratifies 8.25% EPF interest rate for FY26
Jun 18, 2026
WireEPFO begins processing interest credits for over 7 crore subscribers