EPFO began crediting interest at the EPF interest rate of 8.25% for 2025-26 in July 2026, and updated balances started showing from 15 July 2026 for about 34 crore member accounts.
The rate itself was already decided long ago. At the 239th meeting held in March 2026, the Central Board of Trustees (CBT) of the EPFO recommended a rate of 8.25% a year for 2025-26, as per a release of the Ministry of Labour and Employment issued through PIB on 2 March 2026.
From recommendation to circular
The next step came from the finance ministry. A report by Swarajya says the ministry had concurred with the rate for 2025-26 and that crediting was expected once the labour ministry acted.
Central government approval was then communicated through a letter from the Ministry of Labour dated 17 June 2026, as mentioned in SGCMS Regulatory Updates.
The EPFO circular came out on 1 July 2026, where it declares the rate for the year under Para 60(1) of the EPF Scheme, 1952.
How the interest is worked out
The EPFO calculates the interest every month on the closing balance of the member, at about 0.688% per month. The interest is credited only once a year, after the 31 March year end, and it is compounded annually.
For person who has a balance of Rs 5,00,000 and keeps it for the whole year, the interest will be about Rs 41,250 as per our own calculation, before any rules on balances or timing are taken into account.
