New Delhi, June 18: The Indian government has approved an interest rate of 8.25% on Employees’ Provident Fund (EPF) deposits for the financial year 2026. This decision will benefit over 70 million subscribers contributing to the Employees’ Provident Fund Organization (EPFO).
Reports indicate that the Central Board of Trustees (CBT), the decision-making body of EPFO, received approval from the Finance Ministry for the 8.25% interest rate. The interest on EPF is expected to be credited by the end of this month.
The CBT, chaired by Union Labour Minister Mansukh Mandaviya, decided on March 2, 2026, to maintain the interest rate at 8.25% for FY26. This marks the third consecutive year that the retirement fund body has kept the interest rate unchanged for its subscribers.
Following the CBT’s decision, the proposal was sent to the Finance Ministry, as the government guarantees the EPF deposits. With the ministry’s approval, the EPFO can now initiate the process of crediting interest to members’ accounts.
This announcement comes at a time when the government agency is preparing to implement significant digital reforms under its upcoming EPFO 3.0 platform. Reports suggest that EPFO will introduce a feature allowing subscribers to withdraw provident fund money through Unified Payments Interface (UPI) apps and ATMs linked to EPF accounts.
Developed in collaboration with the National Payments Corporation of India, this new facility is expected to launch soon. Testing for the system has been completed, and an official announcement regarding its launch is anticipated shortly.
Under the proposed system, subscribers will be able to withdraw up to 75% of their EPF balance directly into their bank accounts using UPI-enabled platforms and MTM access.
Experts believe this move will significantly reduce paperwork and processing delays, while also enhancing transparency and accountability in PF withdrawals.
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