The central government has retained an annual interest rate of 8.25 per cent on Employees’ Provident Fund (EPF) accumulations for the financial year 2025-26, according to the Ministry of Labour and Employment.
The rate will be officially notified by the government, following which the Employees’ Provident Fund Organisation (EPFO) will credit the interest into subscribers’ accounts.
The decision was taken at the 239th meeting of the Central Board of Trustees (CBT), chaired by Union Minister for Labour and Employment Mansukh Mandaviya in New Delhi.
Despite global economic uncertainties, EPFO maintained that it has sustained financial discipline, ensuring stable and competitive returns without placing strain on the interest account. The move is expected to benefit crores of workers by strengthening retirement security and safeguarding long-term savings.
EPFO has consistently declared interest rates above 8 per cent in recent years, supported by returns from exchange-traded funds (ETFs) and other investments. The latest decision reflects the strong credit profile of its investment portfolio and its capacity to deliver competitive returns.
In addition to retaining the interest rate, the CBT approved a one-time Amnesty Scheme to address compliance issues related to income tax-recognised trusts yet to be covered or granted exemption under the EPF & MP Act, 1952, taking into account provisions of the Finance Act, 2026.
The scheme proposes a six-month window for establishments and trusts to regularise compliance. It offers waiver of damages, interest and penalties for entities that have already provided benefits equal to or better than the statutory scheme. Retrospective relaxation or exemption may be granted under specified conditions, ensuring eligible employees receive statutory benefits.
The measure is expected to resolve over 100 active litigation cases and benefit thousands of trust members.
The Board also approved a new simplified Standard Operating Procedure (SOP) on EPF exemption, consolidating four existing SOPs and the Exemption Manual into a unified framework. The revised process introduces an end-to-end digital mechanism for surrender and transfer of past accumulations, aimed at improving transparency, reducing compliance burden and enabling risk-based online audits.
Further, the CBT cleared the notification of new social security schemes under the Code on Social Security, 2020. The newly approved EPF Scheme, 2026, EPS, 2026 and EDLI Scheme, 2026 will replace existing schemes and provide a strengthened legal framework for administering provident fund, pension and insurance benefits.
The Board also approved the EPFO Annual Report for 2024-25 and recommended it for tabling before Parliament. The report outlines expansion of social security coverage, digitisation initiatives, improvements in service delivery and overall organisational performance during the year.
EPFO is the country’s principal social security body, providing provident fund, pension and insurance benefits to the organised workforce.
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