EPFO maintains 8.25% interest rate on EPF deposits for 2025-26

At present, the total investible corpus of EPFO is Rs 17.46 lakh crore.

• EPFO keeps EPF interest rate at 8.25% for 2025-26
• Rate unchanged for second year, pending Finance Ministry approval
• EPF interest rate has gradually declined over the past decade

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The retirement fund organisation EPFO, on March 2, 2026, announced that the interest rate for employees' provident fund (EPF) deposits for 2025-26 will be 8.25 percent, maintaining the same rate for the second year in a row. This rate applies to contributions made between April 1, 2025, and March 31, 2026.

Last year, the EPF interest rate for the financial year 2024-25 was set at 8.25% per annum.

Over the past decade, the interest rate on employees’ provident fund (EPF) deposits has experienced a slight decline. In 2015–16, subscribers earned 8.8 percent on their savings, while for 2025–26 the retirement fund body EPFO has set the rate at 8.25 percent. This represents a decrease of 0.55 percentage points over ten years, indicating a gradual decline in returns on the scheme.

In February last year, the EPFO retained the 8.25 per cent interest rate for the 2024-25 fiscal year. The Employees' Provident Fund Organisation (EPFO) increased the interest rate slightly to 8.25 per cent for 2023-24 in 2024, up from 8.15 percent in 2022-23.

In March 2022, EPFO lowered the interest rate on post-retirement deposits for 2021-22 to an over four-decade low of 8.10 per cent for its over seven crore subscribers, from 8.5 percent in 2020-21.

The 8.10 per cent rate for 2020-21 was the lowest since 1977-78, when the rate stood at 8 percent, per press PIB release.

After the CBT's decision, the interest rate on EPF deposits for 2025-26 will be sent to the Ministry of Finance for approval. Once the government ratifies it, the interest rate for 2025-26 will be credited to the accounts of over seven crore EPFO subscribers.

EPFO announces the interest rate after approval by the government through the finance ministry.

In March 2020, EPFO lowered the interest rate on provident fund deposits to a seven-year low of 8.5 percent for 2019-20, down from 8.65 per cent for 2018-19, per press PIB release.

EPFO provided an 8.65 per cent interest rate to its subscribers in 2016-17 and 8.55 percent in 2017-18. The interest rate was slightly higher at 8.8 per cent in 2015-16.

Rishi Agrawal, CEO and Co-Founder of Teamlease Regtech, said, "The EPFO’s ability to declare interest is directly linked to its realised income, which is largely driven by returns on government securities and debt instruments, with a capped exposure to equities. In the absence of a sustained rise in yields, an upward revision would have required drawing down reserves, which is not prudent in a contributory social security system."

Agrawal said that at the same time, the decision highlights the structural limits of the current investment framework. If higher returns are to be delivered consistently, the conversation must shift towards calibrated diversification and deeper capital market participation. Globally, pension and provident funds balance safety with disciplined exposure to growth assets. India will need to progressively strengthen this balance.

"For employers and employees, predictability in declared returns reinforces confidence in formal retirement savings. However, over the medium term, policy must focus on improving fund efficiency and transparency so that rate decisions are driven by performance. Stability today is understandable. Structural reform will determine sustainability tomorrow," said Agrawal.