Before Holi festival, A big decision has been taken in the meeting of the Employees Provident Fund. There’s been no change in the interest rate for EPF deposits. Contributors to the EPFO will keep earning an interest rate of 8.25 percent for the financial year 2025-26.

 

During a recent meeting of the Central Board of Trustees (CBT), led by Union Labor and Employment Minister Dr. Mansukh Mandaviya, it was suggested to maintain the annual interest rate at 8.25% for EPF deposits. Once the Central Government issues the notification, this interest will be credited to the accounts of EPFO contributors.

 

Currently, EPF offers the highest interest rate among various savings schemes.

 

Before the meeting, there were concerns that the interest rates might be lowered this time around, but that didn’t happen. Last year, the interest rate was also set at 8.25 percent. The government had previously reduced the PF interest rate from 8.5 to 8.1 percent in 2022, but it was restored to 8.25 percent in 2024.

 

In comparison to other options, EPF offers more interest than the Sukanya Samriddhi Yojana.

 

Right now, the Public Provident Fund (PPF) is offering 7.1 percent interest. If you invest in a post office scheme for five years, you’ll get 7.5 percent interest, which is the same rate for Kisan Vikas Patra. For term deposits of up to three years, the interest rate stands at 7.1 percent.

 

The Senior Citizen Saving Scheme and Sukanya Samriddhi Yojana offer an interest rate of 8.2 percent, while the National Saving Certificate provides 7.7 percent. In contrast, post office savings accounts yield only 4 percent annually. Therefore, the interest earned on Provident Fund (PF) is the highest among these options.

 

Significant changes have been introduced in the Employee Deposit Linked Insurance (EDLI) during the CBT meeting. If an EPF member passes away within a year of regular service, their nominee will receive a life insurance benefit of Rs 50,000. This update is expected to assist around 5,000 families.

 

Additionally, if an employee dies within six months of their last PF contribution, they will also be eligible for EDLI benefits, provided their name remains on the roll. Previously, such cases were classified as out of service, and families did not receive any benefits. This change will positively impact over 14,000 families annually.

 

Moreover, if there is a two-month gap between leaving one job and starting another, it will now be regarded as continuous employment. This adjustment will extend EDLI benefits to approximately 1,000 families. Previously, even a brief gap of one or two days between jobs disqualified individuals from receiving the minimum benefit of Rs 2.5 lakh and a maximum of Rs 7 lakh under EDLI due to the one-year continuous service requirement. It is anticipated that these CBT decisions will benefit around 20,000 families each year.