The Central Board of Trustees (CBT) of the Employees’ Provident Fund Organisation has recommended keeping the interest rate on EPF deposits at 8.25% for the 2025-26 financial year. This decision was finalized during the 239th meeting held on March 2, 2026, under the chairmanship of Union Minister Dr. Mansukh Mandaviya. The move ensures stable returns for millions of salaried employees across the country despite fluctuations in the global financial markets.
Key Highlights and Financial Impact
The recommendation to maintain the 8.25% rate will benefit a massive base of active subscribers. The EPFO has managed its portfolio effectively to ensure that interest distribution remains record-high this year. Here are the primary financial details approved by the board:
| Metric | Details |
|---|---|
| Interest Rate | 8.25% (FY 2025-26) |
| Active Subscribers | 7.48 Crore |
| Total Interest Distribution | ₹1,07,000 Crore |
| Total EPFO Income | ₹1.15 Lakh Crore |
| Equity Investment Yield | 14.2% |
| IT Modernization Budget | ₹2,500 Crore |
| Previous Year Surplus | ₹5,300 Crore |
New Rules for Auto-Claims and Digitalization
The board has approved a significant pilot project for ‘Auto Claim Settlement’ targeting inoperative accounts. This is designed to help small depositors who have not accessed their funds for several years. Additionally, new social security schemes have been notified to align with the latest labor codes.
- Auto-Refund: Accounts with balances of ₹1,000 or less that have been inactive for 3 years will get automatic refunds to Aadhaar-linked bank accounts.
- EPFO 2.0: A budget of ₹2,500 crore is set for AI-led automation to ensure 94% of claims are settled within 20 days.
- New Schemes: Notification of EPF Scheme 2026, EPS 2026, and EDLI Scheme 2026 to modernize social security.
- Amnesty Scheme: A six-month window for establishments to settle compliance issues under the EPF Act.
- Female Workforce: Enrollment of women subscribers saw a 32% growth, showing more women entering the formal workforce.
The proposal will now be sent to the Ministry of Finance for final ratification. Historically, once the ministry approves the rate, the interest is credited to individual EPF accounts between July and December.
