EPF 8.25% interest credit soon; UPI, ATM withdrawals likely by end of June

More than 7.8 crore Employees' Provident Fund Organisation (EPFO) subscribers are set to receive 8.25% interest on their EPF deposits for FY2025-26, with the Union government approving the rate recommended by the retirement fund body's apex decision-making board. At the same time, the Labour Ministry is preparing to launch EPFO 2.0 by the end of June, enabling withdrawals through UPI and ATMs.

EPF interest credit

The Finance Ministry has approved the 8.25% interest rate proposed by the Central Board of Trustees (CBT), headed by Union Labour and Employment Minister Mansukh Mandaviya, during its meeting on March 2, 2026.

With the approval now in place, the Labour Ministry is expected to issue a formal notification later this month. According to official sources cited by PTI, EPFO is likely to start crediting interest into subscribers' accounts during June itself.

The latest decision means EPF members will continue to earn 8.25% returns for the third straight year. The retirement fund body had retained the same rate for FY2024-25, after raising it from 8.15% in FY2023-24.

Under EPFO's upgraded digital system, the interest amount will be reflected in members' accounts immediately after the credit process begins, ensuring faster updates than in previous years.

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Withdrawals via UPI and ATMs

The Labour Ministry is also expected to unveil EPFO 2.0 by the end of June, marking a major overhaul of the retirement fund body's digital infrastructure.

One of the most significant features of the new system will be the ability to withdraw up to 75% of the EPF corpus directly into bank accounts using UPI or through ATMs. The facility will be available via the BHIM app and will operate within the existing safeguards applicable to UPI transactions.

The move is expected to simplify access to provident fund savings, especially for blue-collar workers and members who may find the existing online withdrawal process cumbersome.

Withdrawal rules

Ahead of the rollout of EPFO 2.0, the retirement fund body has already streamlined withdrawal norms.

Following a Board meeting held in October last year, the number of withdrawal categories was reduced from 13 to three:

Essential needs, including illness, education and marriage;
Housing-related requirements;
Special circumstances.

The simplification is aimed at speeding up claim processing and making withdrawals easier for members.

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Why the 8.25% rate was retained

The decision to maintain the 8.25% interest rate came despite suggestions from EPFO's investment sub-committee and the Finance Ministry to lower the return to 8.10% for FY2025-26.

According to discussions held during the CBT meeting in March, maintaining the higher rate could lead to an estimated deficit of ₹944.06 crore for the retirement fund body. In comparison, a reduction to 8.10% would have generated a surplus.

Nevertheless, the government chose to maintain the existing rate, providing continuity and certainty to millions of salaried employees who rely on EPF savings for long-term wealth creation and retirement planning.

With interest credits expected to begin this month and UPI-based withdrawals likely to become available by the end of June, EPFO subscribers could soon see both higher convenience and faster access to their retirement savings.

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