Your EPF balance is about to rise: EPFO orders 8.25% interest credit

In some good news for nearly 80 million subscribers, the Employees’ Provident Fund Organisation (EPFO) has officially declared the 8.25% interest rate on provident fund contributions for FY26 and has directed field offices to credit it to member accounts.

“The Ministry of Labour and Employment, Government of India, has conveyed the approval of the Central Government under Para 60(1) of Employees' Provident Fund Scheme, 1952 to credit interest @ 8.25% for the Financial Year 2025-26 to the account of each member of the EPF Scheme… You are, accordingly, requested to issue necessary instructions to all concerned for crediting the said interest to the members' accounts,” the EPFO said in a recent circular.

This comes at a time when the retirement fund manager has completed a major database consolidation and software upgrade over the last one week. The credit of interest into members’ accounts is expected to be much faster and seamless and will not be as staggered a process as in the past when it could take one or two months to be completed for all members.

Subscribers have been awaiting the credit of interest in their accounts after the decision was taken earlier this year.  The Central Board of Trustees of the EPFO in March this year had approved an interest rate of 8.25% for FY26 for over 80 million EPFO subscribers. This was the third consecutive year this rate has been maintained. Following the approval by the EPFO, the proposal is sent to the finance ministry, which then ratifies it. The finance ministry had then conveyed its approval to the interest rate in June this year.