New Delhi, March 2 (NationPress) The Employees’ Provident Fund Organisation (EPFO) has officially sanctioned an interest rate of 8.25 per cent on employees’ provident fund (EPF) deposits for the financial year 2025-26. This marks a continuation of the same interest rate for the second consecutive year, as stated in an official announcement.

This decision was made during the 239th meeting of the Central Board of Trustees, held in the national capital, under the chairmanship of Union Labour and Employment Minister Mansukh Mandaviya. The meeting also saw the participation of Minister of State Shobha Karandlaje, Labour & Employment Secretary Vandana Gurnani, and EPFO Chief Ramesh Krishnamurthi.

Following this decision by the CBT, the proposed interest rate will be forwarded to the Ministry of Finance for final approval. Once ratified, this new rate will be credited to the accounts of over 70 million EPFO subscribers.

Interest on EPF deposits is calculated on a monthly basis but is credited to subscribers' accounts at the end of the financial year. However, accounts that remain inactive for a duration of 36 months are classified as dormant and do not earn further interest.

In spite of global economic uncertainties, the EPFO has upheld a strong financial discipline, ensuring consistent and competitive returns without placing a strain on the interest account. This decision significantly benefits millions of workers by enhancing their retirement security and reaffirming the EPFO’s commitment to protecting contributions while delivering prudent, sustainable, and attractive returns compared to other investment options, as the statement outlined.

For several years, the EPFO has successfully declared an interest rate exceeding 8 per cent, largely due to favorable returns from ETF and other investments. This decision is indicative of the robust credit profile of the EPFO’s investment portfolio and its ongoing ability to provide competitive returns to its members.

Furthermore, as part of ongoing reforms, the Board has approved a one-time Amnesty Scheme aimed at addressing compliance issues related to income tax-recognized trusts that are not yet covered or exempt under the EPF & MP Act, 1952. This scheme is designed to bring establishments and trusts into compliance within a set six-month timeframe, primarily to safeguard workers' interests while waiving damages, interest, and penalties for those already providing benefits equal to or better than the statutory scheme. It permits retrospective relaxation or exemption subject to specified conditions, ensuring all eligible employees receive their statutory benefits.

This initiative is expected to resolve over 100 active litigation cases and will benefit thousands of trust members. The scheme will apply to exempted establishments that have adhered to the provisions of the EPF & MP Act, 1952.

The Board also endorsed a new simplified SOP on EPF Exemption, merging four existing SOPs and the Exemption Manual into a single, comprehensive framework aimed at reducing compliance burdens. This SOP establishes an end-to-end digital process for the surrender and transfer of past accumulations, enhancing transparency and efficiency in the audit process for exempted establishments. This unified framework will promote ease of doing business.

Additionally, the CBT approved notifications for new social security schemes to align with the Code on Social Security, 2020, ensuring a smooth transition from the existing framework. The newly sanctioned Employees’ Provident Fund Scheme, 2026, Employees’ Pension Scheme, 2026, and Employees’ Deposit Linked Insurance (EDLI) Scheme, 2026 will replace current schemes, establishing a legally sound foundation for administering provident fund, pension, and insurance benefits.