Govt Ratifies 8.25% Interest Rate For FY 2025-26

New Delhi: The employees’ provident fund (EPF) subscribers have a reason to cheer, as the EPF account holders are likely to get 8.25 per cent interest soon after government approval. Besides, the subscribers can also soon withdraw their money directly through all the UPI platforms and ATMs at ease whenever they need as the much-awaited EPFO 3.0 platform is ready for rollout across the country soon, a top government source said on Thursday.

“The preparation of a new subscriber-friendly system is in its final stages and the withdrawal facility is likely to be available by June-end this year. Once the new version 2.01 server becomes operational, EPF members will be able to access their PF savings directly through UPI and ATMs. The move is aimed at making PF withdrawals faster, simpler and more convenient for over 7 crore EPFO subscribers across the country,” the source added.

On the interest rates, the source, however, said that the central government has ratified 8.25 per cent rate of interest on EPF deposits for 2025-26, which is likely to be credited to over seven crore contributing members this month. The employees’ provident fund organisation (EPFO) generally provides the rate of interest on EPF after getting approved by the government through the finance ministry. “The finance ministry has approved the proposal after vetting it and the EPFO is likely to credit the 8.25 per cent rate of interest for 2025-26 into subscribers’ accounts this month only,” the source said.

Earlier on March 2, 2026, Central Board of Trustees (CBT), the apex decision making body EPFO, had a meeting chaired by the Union labour minister Mansukh Mandaviya and decided to fix 8.25 per cent rate of interest for the financial year 2025-26, marking the third consecutive year this rate has been maintained. “Under the new ecosystem developed by the EPFO, the interest on the EPF will be credited into subscribers’ accounts immediately,” the source said.

As far as EPFO 3.0 platform is concerned, under the proposed system, the EPFO members may be able to transfer eligible PF funds directly to their Aadhaar-linked bank accounts using UPI-based services. “The facility is being developed in partnership with the National Payments Corporation of India (NPCI), which operates India's UPI network,” the source said.

According to the proposed framework, subscribers may be allowed to withdraw between 50 per cent and 75 per cent of their eligible PF balance. However, the final withdrawal limits and conditions will be announced only after the official rollout by the EPFO. “A part of the corpus will continue to remain protected for retirement purposes. The new proposal suggests that at least 25 percent of a subscriber's total PF savings will remain in the account and cannot be withdrawn,” the source said. #End#

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INFO BOX (IF REQUIRED)

* In February last year, the EPFO had retained the 8.25 per cent rate of interest for 2024-25.

* In 2024, the EPFO increased the interest rate marginally to 8.25 per cent for 2023-24, from 8.15 per cent in 2022-23.

* In March 2022, EPFO lowered the interest on post-retirement deposits for 2021-22 to an over four-decade low of 8.10 per cent from 8.5 per cent in 2020-21.

* The 8.10 per cent rate for 2020-21 was the lowest since 1977-78, when the rate stood at 8 per cent.

* In March 2020, EPFO lowered the interest rate on provident fund deposits to a seven-year low of 8.5 per cent for 2019-20, from 8.65 per cent provided for 2018-19.

* EPFO provided an 8.65 per cent interest rate to its subscribers in 2016-17 and 8.55 per cent in 2017-18. The rate of interest was slightly higher at 8.8 per cent in 2015-16.

* The retirement fund body gave 8.75 per cent rate of interest in 2013-14 as well as 2014-15, higher than 8.5 per cent for 2012-13.