New Delhi, March 2 The Employees' Provident Fund Organisation (EPFO), the retirement fund body, announced on Monday that the interest rate on employee provident fund (EPF) deposits for 2025-26 would be 8.25 per cent, maintaining the same rate for the second consecutive year.
In February last year, the EPFO had maintained the 8.25 per cent interest rate for the 2024-25 fiscal year.
The Employees' Provident Fund Organisation (EPFO) increased the interest rate slightly to 8.25 per cent for 2023-24, from 8.15 per cent in 2022-23.
In March 2022, the EPFO lowered the interest rate on post-retirement deposits for 2021-22 to a record low of 8.10 per cent for its over seven crore subscribers, 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 was 8 per cent.
"The EPFO's apex decision-making body, the Central Board of Trustees (CBT), has decided to provide an 8.25 per cent interest rate on EPF for 2025-26 at its meeting on Monday," the source said.
After the CBT's decision, the interest rate on EPF deposits for 2025-26 will be sent to the Ministry of Finance for approval. Once the government ratifies it, the interest rate for 2025-26 will be credited into the accounts of the over seven crore subscribers of the EPFO.
The EPFO sets the interest rate after it has been approved by the government through the finance ministry.
In March 2020, the 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.
The EPFO provided an 8.65 per cent interest rate to its subscribers in 2016-17 and 8.55 per cent in 2017-18. The interest rate was slightly higher at 8.8 per cent in 2015-16.
The retirement fund body also provided an interest rate of 8.75 per cent in 2013-14 and 2014-15, higher than the 8.5 per cent for 2012-13.
The interest rate was 8.25 per cent in 2011-12.