The Employees’ Provident Fund Organisation (EPFO) has officially announced an 8.25 percent interest rate on EPF deposits for financial year 2025-26. The ratings were declared following approval of the Ministry of Labour and Employment under the EPF Scheme, 1952.
The government has launched the Employees’ Provident Funds Scheme, 2026, under the Code on Social Security, 2020. The EPF Scheme, 2026, will replace the current schemes and provide a legally robust foundation for administering provident fund, pension and insurance benefits to central government employees.
Has interest rate increased under new EPF scheme?
Although the old EPF scheme is no longer applicable now, the EPF interest rate of 8.25 percent remains unchanged under the new scheme. The EPF interest rate has not been increased and will continue to remain at 8.25 percent under the new scheme. The EPFO has officially notified the 8.25 percent interest rate on EPF deposits for financial year 2025-26. It has directed regional and zonal offices to credit the approved interest to members’ EPF accounts.
As per an EPFO circular on July 1, 2026, “The Ministry of Labour and Employment, Government of India, has conveyed the approval of the Central Government under Para 60(1) of Employees’ Provident Fund Scheme, 1952, to credit interest at 8.25 percent for the Financial Year 2025-26 to the account of each member of the EPF Scheme as per the provisions under Para 60 of EPF Scheme, 1952.”
The circular also asked the relevant authorities to issue the required instructions to all concerned in crediting the said interest to the members’ accounts.
EPF comes under Social Security Code, 2020
Until now, the EPF scheme operated under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. It has now come under the Code on Social Security, 2020 with the notification of the EPF Scheme, 2026. The new scheme aims to align the provident fund structure with the new labour codes, strengthen digital compliance, improve administrative efficiency and enhance portability of accounts. The new scheme does not impact the EPF interest rate of 8.25 percent.
What does EPF interest rate of 8.25 percent mean for employees?
The government has approved the continuation of the EPF interest rate at 8.25 percent for FY 2025-26. The PF interest rate at 8.25 percent will benefit crores of workers by strengthening their retirement security. The interest rate means EPF members will continue to earn stable returns on their provident fund savings for FY 2025-26. The actual interest amount will depend on the balance and contribution history of the members. Employees with higher accumulated balances will earn greater interest in absolute terms.
