If you are employed and PF is deducted from your salary every month, then this news can bring a smile on your face. Employees’ Provident Fund Organization (EPFO) has passed a proposal to fix 8.25% interest rate on PF deposits for the financial year 2025-26. This rate has been maintained the same as last year. Now all eyes are on the Finance Ministry for the final approval on this decision.
More than 7 crore employees benefited
EPFO’s decision will affect more than 7 crore account holders in the country. This decision was taken in the meeting of the Central Board of Trustees (CBT). According to sources, the board unanimously approved the proposal of 8.25% interest rate. In times of inflation, a return of 8.25% is a relief news for employed people. This will strengthen their retirement fund and improve their future financial security.
What does interest rate history say?
Fluctuations in PF interest rates have been seen in the last few years. The rate was increased from 8.15% to 8.25% in 2023-24. In 2021-22, it had come down to 8.10%, which was the lowest level in almost four decades. 8.5% interest was being given in 2020-21. In this sense, keeping the rate stable at 8.25% is being considered a positive sign for the employees.
What will happen next now?
After the recommendation of CBT, this proposal has been sent to the Finance Ministry. The interest rate will be officially implemented only after getting the approval of the ministry. EPFO will start depositing interest in the accounts of more than 7 crore members as soon as it gets the green signal from the government. Usually this process takes a few months to complete.
When will interest come to the account?
Interest on PF continues to be calculated every month, but it is credited to the account on or after the end of the year. If we look at the trend of previous years, interest comes into the accounts between June and September. In such a situation, it is expected that the interest for 2025-26 can also be deposited between June and September next year, although there is no fixed date for this.
Latest Business News