Overview
- The EPFO’s Central Board of Trustees fixed the 8.25% rate at its March 2 meeting chaired by Labour Minister Mansukh Mandaviya and sent the proposal to the Finance Ministry for approval.
- The Finance Ministry gave concurrence to the CBT recommendation, a step multiple news outlets reported on June 18 that clears the formal hurdle to implement the rate.
- EPFO plans to credit the annual interest to more than seven crore contributing members’ accounts later this month using a new digital ecosystem designed to speed and streamline the process.
- Keeping the rate at 8.25% marks the third straight year of the same return after earlier fluctuations that included a four-decade low of 8.10% in FY2021-22.
- The decision preserves a government-guaranteed, tax-exempt return for salaried workers and is estimated by one report to carry about a Rs 944 crore fiscal cost for FY26 while members can verify updated balances via EPFO’s portal and apps.