EPFO Interest Rate FY 2025-26: The Ministry of Labor and Employment said that the Central Government has decided to keep the annual interest rate on Employees Provident Fund deposits unchanged at 8.25 percent for the financial year 2025-26. The move is expected to benefit crores of workers by strengthening their retirement savings.The rate will be formally notified by the Government of India, after which the Employees Provident Fund Organization will credit the interest to the customers’ accounts.The announcement was made after the 239th meeting of the Central Board of Trustees of EPF under the chairmanship of Union Labor and Employment Minister Mansukh Mandaviya in New Delhi on Monday.The ministry said that despite the current global uncertainties, EPFO has maintained sound financial management, enabling it to deliver stable and competitive returns without putting undue pressure on its interest reserves. EPFO has managed to maintain the interest rate above 8 per cent in recent years on the back of good earnings from exchange-traded funds and other investments. As part of the ongoing reforms, the Board has also approved a one-time waiver scheme, in keeping with the provisions of the Finance Act, 2026, aimed at resolving compliance issues associated with income tax-recognized trusts which have not yet received coverage or exemption under the EPF and MP Act, 1952.The proposed scheme provides a period of six months to establishments and trusts to regularize their status. This is primarily designed to protect the interests of employees and includes the waiver of damages, interest and penalties in cases where trusts have already provided benefits that match or exceed statutory requirements. The scheme allows retrospective exemption or waiver subject to specific conditions and ensures that eligible workers receive essential benefits.This initiative is expected to settle over 100 ongoing litigation cases along with several additional cases, benefiting thousands of members of the Trust. This will be applicable to exempted establishments which have complied with the provisions of the EPF & MP Act, 1952.The ministry also said that the board has approved a new simplified standard operating procedure on EPF exemption. This framework merges four existing SOPs and exemption manuals into a single, comprehensive system with the aim of simplifying compliance requirements. The revised SOP introduces a complete digital process for surrendering exemption and transferring past accumulations. The technology-driven approach aims to increase transparency and efficiency in audit of exempted establishments. The integrated system is expected to support ease of doing business, enable paperless operations, expedite processing of exemption related cases and encourage compliance through risk-based online audits.EPFO functions as a social security institution mandated to provide provident fund, pension and insurance benefits to organized sector workers across the country.
