EPFO Interest Rate: Comforting decision of EPFO; Interest will be credited directly to the member’s account

By Samira Vishwas On Mar 3, 2026

Financial empowerment for employees
3rd consecutive year returns above 8%
New scheme sanctioned under Social Security Code

EPFO Interest Rate: This is a comforting news for lakhs of employees across the country. Employees’ Provident Fund Organization (EPFO) has announced 8.25% interest rate on provident fund deposits for 2025-26. This is the third year in a row that EPFO members will get this interest rate on their retirement funds.

The decision was taken in a meeting of the Central Board of Trustees (CBT). In a statement issued after the meeting, the Ministry of Labor and Employment said that due to good returns from ETFs and other investments, EPFO has been able to provide interest rates above 8% for many years. This rate reflects the strong credibility and competitive returns of EPFO’s investment portfolio.

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This interest will be credited to the member’s account after official notification by the government. Money stuck in inactive PF accounts will be liquidated. The CBT, chaired by Union Labor and Employment Minister Mansukh Mandaviya, approved another significant relief. A pilot project will be started for auto-initiated claim settlement for funds stuck in inactive EPFO accounts.

The first phase will cover approximately 1.33 lakh accounts with a balance of 1,000 or less. 5.68 crores are stuck in these accounts. According to the ministry, the amount will be directly transferred to Aadhaar-seeded and EPFO-linked bank accounts. No new claims or documents will be required.

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Transfer and claim settlement has long been a major challenge for members. This step will simplify the process and help in getting the dues faster. If the pilot project is successful, accounts with balances above ₹1,000 will also be included in the next phase.

The CBT approved the new schemes under the Social Security Code, 2020. Employees Provident Fund Scheme, 2026, Employees Pension Scheme, 2026 and Employees Deposit Linked Insurance (EDLI) Scheme, 2026 will replace the existing framework. Their aim is to legally strengthen the functioning of PF, pension and insurance benefits.

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