According to PTI report, the finance ministry has approved the proposal recommended by the Central Board of Trustees (CBT), the apex decision-making body of the EPFO.
With the ratification now in place, over seven crore EPFO subscribers are likely to receive the interest credit in their accounts by the end of this month, according to the report.
The CBT, chaired by Union Labour Minister Mansukh Mandaviya, had in March decided to retain the 8.25% interest rate for 2025-26, marking the third consecutive year that the rate has remained unchanged.
Following the CBT’s decision, the proposal was sent to the finance ministry for concurrence, as EPF deposits carry sovereign backing from the Government of India.
How EPF interest is calculated
The interest on EPF deposits is calculated monthly but credited to accounts at the end of the financial year.
However, accounts that remain inactive for 36 months stop earning interest and become dormant.
EPF interest rate trends over the years
The EPFO had retained the same 8.25% interest rate for FY25 as well. Prior to that, the retirement fund body had increased the rate to 8.25% for 2023-24 from 8.15% in 2022-23.
In March 2022, EPFO had reduced the interest rate to 8.10% for 2021-22, the lowest in more than four decades.
