EPFO retains interest rate on provident funds at 8.25 per cent for 2025-26
This comes as Union Minister for Labour and Employment Mansukh Mandaviya on Monday chaired the 239th meeting of the Central Board of Trustees (CBT), EPF in New Delhi.
ANI
Mar 02, 2026 18:27 IST
New Delhi [India], March 2 (ANI): The central government has retained an 8.25 per cent annual rate of interest to be credited on Employees' Provident Fund (EPF) accumulations in members' accounts for the financial year 2025-26, according to the Ministry of Labour and Employment of India.
The interest rate would be officially notified by the Government of India, following which the Employees' Provident Fund Organisation (EPFO) would credit the rate of interest into the subscribers' accounts.
This comes as Union Minister for Labour and Employment Mansukh Mandaviya on Monday chaired the 239th meeting of the Central Board of Trustees (CBT), EPF in New Delhi.
Despite global uncertainties, EPFO has maintained strong financial discipline, ensuring stable and competitive returns without straining the interest account. The decision benefits crores of workers by strengthening their retirement security, while reaffirming EPFO's commitment to safeguarding contributions and delivering prudent, sustainable, and attractive returns compared to other similar investment avenues.
EPFO has been able to declare an interest rate of above 8 per cent for the past several years owing to the good returns given by ETF and other investments.
The decision reflects the strong credit profile of EPFO's investment portfolio and its sustained ability to deliver competitive returns to its members.
Further, continuing the reforms in EPFO, under the chairmanship of Mandaviya, the Board approved a one-time Amnesty Scheme to address compliance issues arising from income tax-recognized trusts that are yet to be covered or granted exemption under the EPF & MP Act, 1952, duly taking into account the provisions of the Finance Act, 2026.
The proposed scheme seeks to bring establishments and trusts into compliance within a defined six-month period, primarily to protect workers' interests while waiving damages, interest and penalties for those that have already provided benefits equal to or better than the statutory scheme. It allows retrospective relaxation or exemption subject to specified conditions and ensures that all eligible employees receive statutory benefits.
The measure is expected to resolve over 100 active litigation cases, along with several others, thereby benefiting thousands of trust members. The scheme shall apply to those exempted establishments which have complied with the provisions of the EPF & MP Act, 1952.
"The Board approved the new simplified SOP on EPF Exemption, consolidating the existing four SOPs and the Exemption Manual into a single comprehensive framework, which aims to reduce compliance burden. The SOP also provides an end-to-end digital process for the surrender and transfer of past accumulations. This technology-driven governance approach will make the audit of exempted establishments more transparent and efficient. A unified framework will promote ease of doing business, ensure transparency with paperless work, faster processing of surrender/cancellation of exemption cases and incentivise compliant behaviour through risk-based online audit," the labour ministry said.
Ministry further added that CBT has approved the notification of new social security schemes under the Code on Social Security, 2020, to ensure seamless transition from the existing framework. The newly approved EPF Scheme, 2026, EPS, 2026 and EDLI Scheme, 2026 will replace the current schemes and provide a legally robust foundation for administering provident fund, pension and insurance benefits.
The CBT approved the Annual Report of EPFO for the year 2024-25 and recommended it for tabling before the Parliament. The Annual Report highlights expansion of social security coverage, various digitisation initiatives, service delivery improvements and organisational performance during the year 2024-25.
EPFO is a social security organisation responsible for providing social security benefits in the form of Provident, Pension and Insurance Funds to the organised workforce of the country. (ANI)
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