New Delhi: The Employees’ Provident Fund Organisation (EPFO) has decided to retain the interest rate on Employees’ Provident Fund (EPF) deposits at 8.25 per cent for the financial year 2025–26, marking the third consecutive year that the rate has remained unchanged.
The decision was taken at a meeting of the Central Board of Trustees (CBT), the apex body of the EPFO, chaired by Union Labour and Employment Minister Mansukh Mandaviya. The recommendation will now be sent to the Government of India for formal notification, after which the interest will be credited to subscribers’ accounts.
The retirement fund body had maintained the same rate for 2024–25, while in 2023–24 it had raised the return slightly to 8.25 per cent from 8.15 per cent recorded in 2022–23. According to the Labour Ministry, the organisation has been able to sustain competitive returns despite global economic volatility, citing prudent financial management and disciplined investment strategies.
One-Time Amnesty Scheme Approved
The Board also cleared a one-time Amnesty Scheme aimed at resolving long-pending compliance issues involving certain income tax-recognised trusts that are yet to secure coverage or exemption under the EPF & MP Act, 1952. The move, aligned with provisions of the Finance Act, 2026, is designed to regularise such entities within a six-month window.
Under the proposed scheme, establishments that have already provided benefits equal to or better than statutory norms may receive relief from damages, interest and penalties. The initiative is expected to address over 100 active litigation matters and benefit thousands of members linked to such trusts.
Simplified Exemption Framework and Digital Reforms
To ease compliance, the CBT approved a new Standard Operating Procedure (SOP) on EPF exemptions, consolidating multiple existing guidelines into a unified framework. The revised SOP introduces a fully digital process for surrendering exemptions and transferring past accumulations, reducing paperwork and procedural delays.
The Board also endorsed notification of new social security schemes under the Code on Social Security, 2020. The upcoming EPF Scheme, 2026, Employees’ Pension Scheme (EPS), 2026, and Employees’ Deposit Linked Insurance (EDLI) Scheme, 2026 will replace the current structures, providing a more robust legal foundation for administering retirement, pension and insurance benefits.
Focus on Inoperative Accounts and Fund Management
In a bid to streamline operations, EPFO will launch a pilot project to automatically settle claims in inoperative accounts with balances of ₹1,000 or less. Depending on the outcome, the facility may later extend to accounts holding larger unclaimed sums.
With a consolidated corpus exceeding ₹28.34 lakh crore as of March 2025, the organisation has also strengthened its investment governance framework. A comprehensive SOP was cleared to institutionalise time-bound and transparent decision-making, enhance oversight by the Investment Monitoring Cell (IMC), and mitigate reinvestment and interest rate risks.
The revised framework outlines structured protocols for investments in government securities, state development loans, PSU bonds and other permitted instruments. It also formalises guidelines for equity ETF exposure, liquidity management through liquid mutual funds, and adoption of an annual systematic investment plan (SIP) approach. Enhanced audit trails and reporting mechanisms have been incorporated to safeguard members’ funds.
Recruitment and Higher Pension Update
The CBT approved the Institute of Banking Personnel Selection (IBPS) as the designated agency to conduct direct recruitment and promotion examinations for EPFO.
On the issue of higher pension benefits following a Supreme Court judgment, the organisation reported that 17.49 lakh applications for pension on higher wages were received. Of these, approximately 15.24 lakh applications have been processed as of February 23, 2026.
With stable interest returns and a series of administrative and investment reforms, EPFO aims to strengthen governance while protecting the long-term savings of millions of subscribers across the country.
