EPFO may retain interest rate at 8.25% for FY26 ahead of CBT meet on March 2

For the third consecutive year, subscribers of the Employees’ Provident Fund Organisation are likely to earn 8.25% interest on their retirement savings. According to sources, the EPFO is likely to retain the interest rate on provident fund deposits at 8.25% for the current fiscal year. A decision to this effect is likely to be taken at the meeting of the Central Board of Trustees of the EPFO on March 2.

Sources indicated that the EPFO would have adequate surpluses from its investments to meet the interest rate this fiscal but would have to consider newer investment avenues in the coming years or lower returns from the next fiscal.

The EPFO has a corpus of a little over Rs 28 lakh crore. It invests 45-65% of fresh inflows to its corpus to government securities, 20-45% to other debt instruments, 5-15% in equities via ETFs, and up to 5% in short-term debt.

The EPFO is also working on an interest stabilisation reserve fund that would provide a stable and consistent interest rate to subscribers, irrespective of any volatility.

The CBT, which is the apex decision making body of the EPFO and is headed by Labour and Employment Minister Mansukh Mandaviya had last met on October 15, 2025, when it had announced several reforms for easier withdrawal of PF funds.

According to sources, this time as well, the CBT is likely to go ahead with more reforms aimed at ensuring smoothening transactions for the EPFO’s subscribers, which could include a tech upgrade of its website and also faster withdrawals and settlement of claims.  The agenda for the upcoming meeting of the CBT is however, yet to be circulated.