EPFO likely to maintain 8.25% rate of return in FY27 too

In some good news for subscribers, the Employees’ Provident Fund Organisation (EPFO) is confident that it would be able to maintain the 8.25% return on contributions in the current fiscal as well.

According to sources, the EPFO has managed to continue getting good returns on its investments and has also sufficient buffers to ensure that subscribers can continue to get the current rate of interest. “We have already made provisions to ensure that our members can enjoy the current return on PF deposits this fiscal as well,” said a source familiar with the development, adding that it would also encourage them to continue depositing money with the retirement fund agency rather than withdraw it using the easier rules now available.

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“Amongst retirement and savings products, the EPFO continues to give one of the best returns and is also tax efficient,” the source pointed out.

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If this goes through, it would be the fourth consecutive year when the EPFO has given an 8.25% rate of return on contributions. In the last three financial years – FY24, FY25 and FY26, it has given the same rate of return of 8.25% and prior to that, it was at 8.15% in 2022-23.

The proposal would however be approved by the Central Board of Trustees, which is the apex decision making body of the EPFO after being vetted by its subcommittee on Finance, Investment and Audit.  Typically, the meeting of the CBT on interest rate takes place only towards the end of the financial year in February or March.

Meanwhile, EPFO subscribers can expect their interest for FY26 to be credited into their accounts by next month. The EPFO is at present undertaking a planned database consolidation and upgradation of software applications for the claims processing system as part of its CITES 2.01 initiative. Its portal remains temporarily unavailable for claims submission and processing from June 26 to June 29.

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