Big relief for salaried employees: EPFO interest credit for FY26 likely in coming weeks
New CITES software to pave the way for faster settlements, smart cards and UPI withdrawals
- Jun 18, 2026,
- Updated Jun 18, 2026 1:13 PM IST
The wait for the credit of interest on provident fund contributions is likely to end soon. The government is expected to credit the interest on Employees' Provident Fund (EPF) deposits for FY26 in the next few weeks.
According to sources, the government has ratified the 8.25% interest rate on EPF deposits for FY26, and the process of crediting the amount to members' accounts is set to begin shortly. A formal notification is expected to be issued soon.
The Employees' Provident Fund Organisation (EPFO) is also working on upgrading its backend software, following which interest crediting and several other reforms will be rolled out.
MUST READ: Good news for EPF subscribers: UPI, ATM-based PF withdrawals likely before June-end
The server for the Centralized IT Enabled System (CITES), or EPFO 2.01, is expected to be installed this month. Once that is completed, the interest amount will be credited to subscribers' accounts, sources said.
With the new software in place, the process of crediting interest is expected to become much faster and could be completed for all members within seven to 10 days, compared with the current system under which the exercise takes three to four months, the sources added.
On March 2, 2026, the EPFO's apex decision-making body, the Central Board of Trustees (CBT), chaired by Labour Minister Mansukh Mandaviya, approved an interest rate of 8.25% for FY26 for more than eight crore EPFO subscribers. This is the third consecutive year that the rate has been maintained. After approval by the EPFO, the proposal is sent to the Finance Ministry for ratification.
According to sources, once the EPFO 2.01 platform is implemented, the retirement fund body will also roll out several new initiatives, including smart cards and the facility to withdraw EPF money through UPI.
MUST READ: PF dues: HC says EPFO cannot recover Rs 2.5 cr payout from retired employee, holds employer liable
The wait for the credit of interest on provident fund contributions is likely to end soon. The government is expected to credit the interest on Employees' Provident Fund (EPF) deposits for FY26 in the next few weeks.
According to sources, the government has ratified the 8.25% interest rate on EPF deposits for FY26, and the process of crediting the amount to members' accounts is set to begin shortly. A formal notification is expected to be issued soon.
The Employees' Provident Fund Organisation (EPFO) is also working on upgrading its backend software, following which interest crediting and several other reforms will be rolled out.
MUST READ: Good news for EPF subscribers: UPI, ATM-based PF withdrawals likely before June-end
The server for the Centralized IT Enabled System (CITES), or EPFO 2.01, is expected to be installed this month. Once that is completed, the interest amount will be credited to subscribers' accounts, sources said.
With the new software in place, the process of crediting interest is expected to become much faster and could be completed for all members within seven to 10 days, compared with the current system under which the exercise takes three to four months, the sources added.
On March 2, 2026, the EPFO's apex decision-making body, the Central Board of Trustees (CBT), chaired by Labour Minister Mansukh Mandaviya, approved an interest rate of 8.25% for FY26 for more than eight crore EPFO subscribers. This is the third consecutive year that the rate has been maintained. After approval by the EPFO, the proposal is sent to the Finance Ministry for ratification.
According to sources, once the EPFO 2.01 platform is implemented, the retirement fund body will also roll out several new initiatives, including smart cards and the facility to withdraw EPF money through UPI.
MUST READ: PF dues: HC says EPFO cannot recover Rs 2.5 cr payout from retired employee, holds employer liable