Continuation of 8.25% interest on PF deposits for 2025-26

The Labour Ministry has announced that an interest rate of 8.25 percent will be paid on Employees’ Provident Fund (EPF) deposits for the financial year 2025-26. Notably, this marks the third consecutive year the same rate has been maintained.

The interest rate stood at 8.15 percent in 2022-23 and was increased to 8.25 percent the following year, where it has remained since. The decision was taken at the EPFO Central Board of Trustees meeting chaired by Union Labour Minister Mansukh L. Mandaviya on Monday.

Despite global economic uncertainties, the ministry stated that the interest rate has been kept stable. A one-time amnesty scheme will also be introduced to resolve issues faced by recognized PF trusts with the Income Tax Department and other authorities. The scheme will allow a six-month window to settle pending cases and related matters.

Additionally, simplified Standard Operating Procedures (SOPs) related to PF exemptions have been approved. A pilot project has also been cleared to directly transfer balances below ₹1000 into the subscribers’ bank accounts.