EPFO releases new update for 2025-26; find out how much interest you'll receive on your PF?

EPFO Interest Rate: The EPFO ​​has recommended maintaining the 8.25% interest rate on PF deposits for the financial year 2025-26. This important decision was made in a meeting chaired by Union Minister Mansukh Mandaviya. More than 70 million employees will soon receive this interest in their accounts.

EPFO Interest Rate: There's good news for more than 70 million employees across the country. The Employees' Provident Fund Organization (EPFO) has announced the interest rates on PF deposits for the financial year 2025-26. The government has not made any changes to the interest rates this time, meaning you will continue to receive the same benefits as last year.

A major decision was taken at the meeting.

The 239th meeting, chaired by Union Minister Mansukh Mandaviya, decided to keep the interest rate at 8.25% for the financial year 2025-26. Senior officials from the Ministry of Labor and Employment and the EPFO ​​chief also attended this high-level meeting.

When and how do you receive the money?

Many people wonder how PF interest is accrued. The process is quite simple:

Interest is calculated monthly on the balance in your account.
Although the calculation is done monthly, the total interest is credited to your PF account simultaneously at the end of the year.

This decision will now be sent to the Finance Ministry for final approval. Once the green light is received, the funds will start flowing into your account.

According to the rules, if your PF account remains inactive for 36 consecutive months (three years), meaning no new contributions are deposited into it, it goes into the dormant category. In such a situation, interest on it stops accruing.

Trend of the last few years

EPFO has kept the interest rate stable at 8.25% for the last two years.

In 2023-24, the interest rate was increased from 8.15% to 8.25%.

In 2021-22, the interest rate decreased to 8.10%, the lowest level in the last 40 years.

What is EPFO ​​and its benefits?

EPFO is an institution of the Government of India that manages the retirement savings of employees working in the private and organized sectors. It contributes contributions from both the employee and the company. It not only ensures old-age pension (EPS), but also provides emergency insurance (EDLI) and fund withdrawals.