The Employees’ Provident Fund Organisation (EPFO) on Monday fixed the interest rate on employees’ provident fund (EPF) deposits at 8.25% for 2025-26, retaining the rate for the second consecutive year.
The decision was taken at the 239th meeting of the Central Board of Trustees (CBT), the apex decision-making body of the EPFO. Labour and Employment Minister Mansukh Mandaviya chaired the meeting.
In February last year, the EPFO had retained the 8.25% interest rate for 2024-25. Earlier, in 2023-24, the retirement fund body had raised the rate marginally to 8.25% from 8.15% in 2022-23.
In March 2022, EPFO had lowered the interest rate to a more than four-decade low of 8.10% for 2021-22, down from 8.5% in 2020-21. The 8.10% rate was the lowest since 1977-78, when it stood at 8%. In March 2020, the rate had been cut to 8.5% for 2019-20 from 8.65% in 2018-19.
Historically, EPFO had offered 8.65% in 2016-17, 8.55% in 2017-18, and 8.8% in 2015-16. The rate stood at 8.75% in both 2013-14 and 2014-15, higher than 8.5% in 2012-13. It was 8.25% in 2011-12.
The interest rate approved by the CBT will now be sent to the Ministry of Finance for concurrence. After ratification by the government, the rate will be officially notified and credited into the accounts of over seven crore subscribers of the EPFO.
The decision was taken at the 239th meeting of the Central Board of Trustees (CBT), the apex decision-making body of the EPFO. Labour and Employment Minister Mansukh Mandaviya chaired the meeting.
In February last year, the EPFO had retained the 8.25% interest rate for 2024-25. Earlier, in 2023-24, the retirement fund body had raised the rate marginally to 8.25% from 8.15% in 2022-23.
In March 2022, EPFO had lowered the interest rate to a more than four-decade low of 8.10% for 2021-22, down from 8.5% in 2020-21. The 8.10% rate was the lowest since 1977-78, when it stood at 8%. In March 2020, the rate had been cut to 8.5% for 2019-20 from 8.65% in 2018-19.
Historically, EPFO had offered 8.65% in 2016-17, 8.55% in 2017-18, and 8.8% in 2015-16. The rate stood at 8.75% in both 2013-14 and 2014-15, higher than 8.5% in 2012-13. It was 8.25% in 2011-12.
The interest rate approved by the CBT will now be sent to the Ministry of Finance for concurrence. After ratification by the government, the rate will be officially notified and credited into the accounts of over seven crore subscribers of the EPFO.
