New Delhi

The central government has retained an annual interest rate of 8.25 per cent on Employees’ Provident Fund (EPF) accumulations for the financial year 2025-26, according to the Ministry of Labour and Employment.

The rate will be officially notified by the Government of India, after which the EPFO will credit the interest into subscribers’ accounts.

The decision was taken at the 239th meeting of the Central Board of Trustees (CBT), chaired by Union Labour and Employment Minister Mansukh Mandaviya in New Delhi on Monday.

Stable returns despite global uncertainties

The ministry said that despite global economic uncertainties, EPFO has maintained financial discipline, ensuring stable and competitive returns without straining the interest account.

EPFO has consistently declared interest rates above 8 per cent in recent years, supported by strong returns from exchange-traded funds (ETFs) and other investments. The move is expected to benefit crores of workers by strengthening retirement security while delivering prudent and sustainable returns compared to similar investment avenues.

The decision reflects the strong credit profile of EPFO’s investment portfolio and its sustained ability to provide competitive returns to members.

Amnesty scheme for compliance

Continuing reform efforts, the CBT approved a one-time Amnesty Scheme to address compliance issues related to income tax-recognised trusts that are yet to be covered or granted exemption under the EPF & MP Act, 1952, in line with provisions of the Finance Act, 2026.

The proposed scheme will allow establishments and trusts a defined six-month window to regularise compliance. It aims to protect workers’ interests while waiving damages, interest and penalties for entities that have already provided benefits equal to or better than the statutory scheme. It also allows retrospective relaxation or exemption under specified conditions, ensuring that eligible employees receive statutory benefits.

The ministry said the measure is expected to resolve over 100 active litigation cases, benefiting thousands of trust members.

Simplified SOP and new schemes

The Board also approved a new simplified Standard Operating Procedure (SOP) on EPF exemption, consolidating four existing SOPs and the Exemption Manual into a single framework to reduce compliance burden.

The new SOP provides an end-to-end digital process for surrender and transfer of past accumulations and introduces a technology-driven, risk-based online audit system to enhance transparency and efficiency.

Additionally, the CBT approved notification of new social security schemes under the Code on Social Security, 2020, to ensure a seamless transition from the existing framework. The newly approved EPF Scheme, 2026, EPS, 2026 and EDLI Scheme, 2026 will replace current schemes, providing a legally robust foundation for administering provident fund, pension and insurance benefits.

The Board also cleared the EPFO’s Annual Report for 2024-25 and recommended it for tabling in Parliament, highlighting expansion of social security coverage, digitisation initiatives and service delivery improvements during the year.

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EPFO is the country’s key social security body, providing provident fund, pension and insurance benefits to the organised workforce.