NEW DELHI: The Central Board of Trustees (CBT) has recommended an 8.25% rate of interest on Employees’ Provident Fund (EPF) deposits for the financial year 2025-26, offering continued relief and stable returns to over six crore subscribers amid global economic uncertainties.
The decision was taken at the 239th meeting of the CBT chaired by Union Labour and Employment Minister Mansukh Mandaviya in New Delhi on Monday. The interest rate will be officially notified by the Government of India, following which the Employees' Provident Fund Organisation (EPFO) will credit the interest into members’ accounts.
The 8.25% rate is in line with the previous year’s return and marks yet another year in which EPFO has maintained an interest payout above 8%, supported by steady income from exchange-traded funds (ETFs) and other investments. Officials said the move reflects the strong credit profile of EPFO’s investment portfolio and its ability to generate competitive returns without straining the interest account.
“Despite global uncertainties, EPFO has maintained strong financial discipline, ensuring stable and competitive returns,” the ministry said in a statement, adding that the decision would strengthen retirement security for crores of workers.
Alongside the interest rate decision, the Board cleared a series of reform measures aimed at improving compliance, governance and service delivery.
Among the key approvals was a one-time Amnesty Scheme for exempted establishments to address long-pending compliance issues under the EPF & MP Act, 1952. The scheme will provide a six-month window for eligible trusts to regularise their status, with waiver of damages and penalties in specified cases, and is expected to resolve over 100 active litigation cases.
The CBT also approved a simplified standard operating procedure (SOP) for EPF exemption, consolidating multiple existing guidelines into a single digital framework to reduce compliance burden and enhance transparency through risk-based online audits.
In another member-centric move, the Board approved a pilot project for auto-initiation of claim settlement in inoperative EPFO accounts with unclaimed balances of Rs 1,000 or less. In the first phase, around 1.33 lakh such accounts involving nearly Rs 5.68 crore will be covered, with funds to be directly credited to Aadhaar-seeded bank accounts without requiring fresh claims.
The Board further cleared the alignment of existing EPF, EPS and EDLI schemes with the Code on Social Security, 2020. New schemes — EPF Scheme, 2026; EPS, 2026; and EDLI Scheme, 2026 — will replace the current framework once notified.
During FY25, EPFO reported total contributions of Rs 3.35 lakh crore, enrolled over 1.22 crore new members, and settled more than six crore claims, underscoring robust operational and financial performance.