The government has approved an 8. 25% interest rate on Employees’ Provident Fund (EPF) deposits for the 2025-26 fiscal year, allowing interest to be credited to the accounts of over seven million contributing subscribers to the Employees’ Provident Fund Organization (EPFO).
The Finance Ministry has apparently authorized the Central Board of Trustees (CBT), the highest decision-making authority of the EPFO, to suggest an 8. 25 percent interest rate.
The money from interest is expected to be put into members’ accounts by the end of the month.
For FY26, the CBT, which is led by Union Labour Minister Mansukh Mandaviya, had chosen on March 2, 2026, to maintain the EPF interest rate at 8. 25 percent.
For the third year in a row, the retirement fund organization has kept the same rate for its members.
The proposal was forwarded to the Finance Ministry for agreement since the government is the guarantor of EPF deposits after the CBT made its choice.
The ministry has now given its approval, therefore EPFO anticipates starting the process of giving interest to the accounts of its members.
The development comes as EPFO gets ready to implement significant digital reforms on its future EPFO 3. 0 platform.
It is anticipated that the organization will roll out a feature that will let users take their provident fund cash via EPF-linked ATMs and UPI applications.
It is reported that the new facility, which is being created in partnership with the National Payments Corporation of India, will likely be available shortly.
The system has already undergone testing, and an official announcement on the rollout is anticipated shortly.
Members might be able to instantly take up to 75% of their EPF amount directly into their bank accounts using ATM access and UPI-enabled platforms under the suggested system.
According to experts, the action will improve openness and accountability in PF withdrawals while drastically lowering paperwork and processing delays.