The Employees' Provident Fund Organisation (EPFO) has retained the interest rate at 8.25% on Employees' Provident Fund (EPF) deposits for 2025-26, marking the second consecutive year of maintaining this rate. The decision was approved at the 239th meeting of the Central Board of Trustees (CBT) held in New Delhi and chaired by Union Labour and Employment Minister Mansukh Mandaviya. The meeting was attended by Minister of State Shobha Karandlaje, Labour and Employment Secretary Vandana Gurnani, and EPFO chief Ramesh Krishnamurthi. Following the CBT's approval, the proposed interest rate will be forwarded to the Ministry of Finance for concurrence, with the new rate to be credited to the accounts of over seven crore EPFO subscribers once formally ratified.
The Board approved a one-time Amnesty Scheme to address compliance issues relating to income tax-recognised trusts that are yet to be covered under or granted exemption under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (EPF & MP Act), taking into account the provisions of the Finance Act, 2026. The proposed scheme aims to bring such establishments and trusts into compliance within a defined six-month window. It seeks primarily to protect workers' interests by waiving damages, interest and penalties for entities that have already provided benefits equal to or better than the statutory scheme. The scheme also allows retrospective relaxation or exemption, subject to specified conditions, and ensures that all eligible employees receive statutory benefits. The measure is expected to resolve over 100 active litigation cases, along with several others, thereby benefiting thousands of trust members.
The Board approved a new, simplified Standard Operating Procedure (SOP) on EPF exemptions that consolidates four existing SOPs and the Exemption Manual into a single comprehensive framework. The revised SOP introduces an end-to-end digital process for the surrender of exemptions and transfer of past accumulations, enhancing transparency and efficiency in auditing exempted establishments. The unified system is expected to promote ease of doing business through technology-driven governance. Additionally, the CBT approved the notification of new social security schemes to align with the Code on Social Security, 2020, ensuring a seamless transition from the existing framework. The newly approved Employees' Provident Fund Scheme, 2026; Employees' Pension Scheme, 2026; and Employees' Deposit Linked Insurance (EDLI) Scheme, 2026 will replace the current schemes, providing a legally robust foundation for administering provident fund, pension and insurance benefits in the coming years.
The Employees' Provident Fund Organisation (EPFO) has implemented a comprehensive update to its grievance mechanism through the CAIU portal, introducing a structured workflow for faster and more accountable processing of complaints. According to reports from Upstox Securities, this new system represents a significant improvement in EPFO's customer service infrastructure, providing employees with a more streamlined pathway for addressing fund-related issues. The new system establishes clear operational benchmarks with complaints now processed within 5 days of submission, and employers required to respond within 7 days of receiving the complaint. In a major transformation for PF withdrawals, the EPFO has implemented the EPFO 3.0 update that has completely revolutionized the withdrawal process, with 95% of claims now being settled automatically and the auto-settlement limit increased from ₹1 lakh to ₹5 lakh.
Despite global economic uncertainties, the EPFO has maintained strong financial discipline, ensuring stable and competitive returns without straining its interest account. Interest on EPF deposits is calculated on a monthly running balance but credited to subscribers' accounts at the end of the financial year. However, accounts that remain inactive for 36 months are classified as dormant and do not earn further interest. The organisation continues its reform initiatives while maintaining its commitment to providing stable returns to subscribers across the country.
