EPFO: A significant resolution was reached during the meeting of the Employees Provident Fund. The interest rate on EPF deposits will remain unchanged. Contributors to the EPFO will continue to receive an interest rate of 8.25 percent for the financial year 2025-26.
Interest rate will be credited
On Friday, the Central Board of Trustees (CBT), under the chairmanship of Union Labor and Employment Minister Dr. Mansukh Mandaviya, recommended maintaining the annual interest rate at 8.25% for EPF deposits. Following the Central Government’s notification, this interest rate will be credited to the accounts of EPFO contributors. Prior to the meeting, there were concerns that the interest rates might be reduced; however, this did not occur. Last year, the interest rate was also set at 8.25 percent.
Currently, this rate is the highest available for provident funds compared to other savings schemes. In 2022, the government had lowered the interest rate from 8.5 to 8.1 percent, but in 2024, it was restored to 8.25 percent. Presently, the Public Provident Fund (PPF) offers an interest rate of 7.1 percent, while deposits in post offices for five years yield 7.5 percent.
Interest rates on various popular savings schemes
The same interest rate applies to Kisan Vikas Patra. For term deposits of up to three years, the interest rate is 7.1 percent, while the Senior Citizen Saving Scheme and Sukanya Samriddhi Yojana provide 8.2 percent. The National Saving Certificate offers an interest rate of 7.7 percent, whereas post office savings accounts yield only 4 percent annually. In this context, the interest rate on provident funds is the most favorable.
New policy stipulates
Additionally, a new policy stipulates that if there is a gap of two months between leaving one job and starting another, it will still be classified as continuous employment. This decision is expected to extend EDLI benefits to one thousand families. Previously, if there was a gap of one or two days between jobs, the minimum benefit of 2.5 lakh and maximum of 7 lakh rupees under EDLI was not granted due to the requirement of one year of uninterrupted service. It is anticipated that these CBT decisions will positively impact 20 thousand families every year.