The Centre has ratified the 8.25% interest rate for EPF deposits this financial year (FY2025-26), marking the third consecutive year at this level. According to reports from Press Trust of India (PTI), the interest is expected to be credited to the accounts of over 7 crore subscribers this month. The Central Board of Trustees (CBT) chaired by Union Labour and Employment Minister Mansukh Mandaviya recommended this rate at its meeting held on 28 February 2026, despite suggestions from the EPFO sub-committee on investment and Finance Ministry to reduce it to 8.10%. Based on the recommended interest rate of 8.25%, the retirement fund body is estimated to incur a loss of ₹944.06 crore, as discussed at the CBT meeting in March. The rate was proposed by the EPFO's Central Board of Trustees (CBT) in March but needs to be approved by the Union Finance Ministry before it can be implemented, as per latest data. Union Labour Minister Mansukh Mandaviya in May said that testing of the facility has been completed, and the service is expected to be rolled out soon, though he did not provide a specific timeline for launch.
EPFO is set to roll out EPFO 3.0 by the end of June 2026, introducing a comprehensive upgrade to India's Provident Fund system that will transform withdrawal processes and accessibility. As reported by Mint, the platform will allow subscribers to withdraw up to 75% of their EPF corpus directly into banking accounts through various UPI and ATM channels. The organisation is undertaking EPFO 3.0 to expand its digital services and online presence through an updated system that will allow subscribers to undertake paperless withdrawal or transfer of provident fund. The move seeks to reduce wait time, improve members access to funds, eliminate processing delays, allow access and transfer to PF savings through the unified payments interface (UPI) and automated teller machines (ATMs). Under EPFO 3.0, subscribers may be able to withdraw 50% to 75% of their EPF balance via UPI or UPI-enabled ATMs, depending on applicable conditions. The system will allow members to use the linked UPI pin to complete transactions and ensure the secure transfer of money into their bank accounts, with the money available for online payments or cash withdrawal at ATMs.
EPFO 3.0 will introduce UPI and ATM-based PF withdrawals that will allow eligible members to transfer up to 75% of their total EPF balance to Aadhaar-linked bank accounts through various channels. As reported by Mint, subscribers will be able to see the eligible EPF balance available to transfer into their seeded bank accounts and will be allowed to use the linked UPI pin to complete the transaction. At least 25% of the total corpus will remain locked as a long-term, mandatory retirement protection buffer, ensuring that members maintain adequate savings for retirement. The government has raised the auto-settlement limit from ₹1 lakh to ₹5 lakh, which will help facilitate faster processing of eligible claims once the system becomes operational. The auto-settlement limit has been increased from ₹1 lakh to ₹5 lakh to allow many EPFO members to access their EPF funds within three days, ensuring subscribers have quicker access to funds for needs such as buying and building a house, education, medical treatment in case of illness, or marriage. EPFO is extremely confident that many claims could be completed within days once the upcoming changes are implemented.
The monthly EPF interest rate is calculated on the total balance in your EPF account including employee contribution, employer's contribution, and the balance already present in the account. According to Mint, Monthly Interest = EPF Balance × (Annual Interest Rate ÷ 12). For example, an employee earning ₹30,000 monthly (Basic + Dearness Allowance) with an 8.25% interest rate would generate ₹65.31 in interest for the second month. The interest is computed on the monthly running balance throughout the financial year and is credited to accounts in a lump sum after government approval. Under EPFO 3.0, interest for this fiscal will be credited into subscribers' accounts immediately, marking a significant improvement in processing speed. EPF members can check interest crediting through UMANG app, EPFO portal, missed-call services and SMS facilities, with the entry typically appearing as 'Int. Updated up to 31/03/2026' in the passbook. The interest amount will be added to the EPF balance once the credit process is completed, and a delay in showing the interest credit in the account does not mean a loss for subscribers under the EPF Scheme, 1952.
Subscribers can track whether the annual interest has been credited through the EPFO passbook portal by logging in with their Universal Account Number (UAN). As reported by Mint, once the annual account update is completed, the interest amount is typically reflected as a separate entry in the passbook along with the updated account balance. Members can also access their EPF details through the UMANG app and EPFO's SMS and missed-call services to obtain basic account information. EPFO 3.0 will allow members to use face authentication technology (FAT) in the UMANG app to get and activate UANs as well as activate existing UANs, providing enhanced security features. The platform will also allow instant access to their passbooks, update incorrect information and submit claims online. Members will have 24/7 access with automated systems to handle repetitive queries in multiple languages. The EPFO 3.0 platform provides enhanced digital tools for easier navigation and clearer access to account information, making it easier for subscribers to monitor their progress toward their wealth building goals. Members can also type 'Hello' to EPFO's registered WhatsApp number to initiate conversation with EPFO or choose to receive EPFO messages on their registered mobile number.
