The retirement fund body EPFO has commenced crediting 8.25% interest on employees' provident fund deposits for FY26, as announced by Labour Minister Mansukh Mandaviya. According to reports from PTI, the annual interest will be credited to 34 crore member accounts, estimated at over ₹1.44 lakh crore. The interest credit marks the first major step after the EPFO migrated its entire database to a centralised digital platform, representing a significant operational milestone for the organization. As per Mint, the 8.25% annual interest rate works out to approximately 0.688% per month, calculated based on monthly running balances but credited once annually after government notification. Labour Minister Mansukh Mandaviya confirmed that the EPFO has processed interest on provident funds of 34 crore members for FY26, with the total interest payable estimated to exceed ₹1.4 lakh crore.
Members can now view the interest credit in their passbook starting July 15, 2026, providing subscribers with a clear deadline to check whether their updated balance has been successfully reflected in their EPF account. This timeline aligns with the earlier announcement by PTI that updated balances would start reflecting by July 15, 2026. The credit process involves automatic processing followed by verification before final crediting to member accounts, ensuring accurate and timely reflection of interest amounts. As per Mint, the interest will be auto processed and then verified by field authorities before being credited to the member account balances, with the last credit showing as 'interest updated up to 15/07/2026' in the passbook. Members have several verification options including the EPFO Member e-Sewa Portal through Passbook Lite, the UMANG app, and SMS services by sending 'EPFOHO UAN' to 7738299899 from their UAN-registered mobile number.
EPFO subscribers have multiple options to verify their updated PF balance following the interest credit. According to Mint, members can access their account details through the EPFO Member e-Sewa portal by logging in with their 12-digit Universal Account Number (UAN), password and captcha, then selecting 'Passbook Lite' to view recent contributions, withdrawals, and updated provident fund account balance. The Passbook Lite facility provides a quick snapshot of contributions, withdrawals and balance information without requiring separate passbook login. Additionally, subscribers can use the UMANG app to check PF balance, view passbook details, track claim status, and access various EPFO services by downloading the app and linking their UAN. The SMS service allows UAN-activated members to check their latest PF contribution and balance by sending an SMS to 7738299899 from their registered mobile number. Members can also check their EPF balance through a missed call service by dialing 9966044425 from their registered mobile number, with the call automatically disconnected after a few rings and subscribers receiving SMS details within seconds.
According to Mint, EPFO has introduced a new Passbook Lite feature integrated into the EPFO Member Portal to facilitate faster balance verification. The feature provides a quick snapshot of contributions, withdrawals and the latest available balance without requiring a separate passbook login. Subscribers can access this summary view by signing in to the Member Portal using their Universal Account Number (UAN), password and OTP, then selecting 'Passbook Lite' from the drop-down menu. The latest interest payout comes after EPFO migrated its entire database to a new centralised digital platform under the Centralised IT Enabled Services (CITES) project, though some PF claims and online services may experience temporary delays during the system migration period. Claim payments will be processed through the centralised architecture and routed through faster e-payment channels, with the credit of settlement amounts made directly into members' bank accounts.
Interest earned on EPF contributions is tax-exempt up to ₹1.5 lakh under Section 80C under the old tax regime, according to Mint. However, if subscribers contribute towards voluntary provident fund (VPF), and if their total annual contribution (Employee's 12% + VPF) exceeds ₹2.5 lakh, interest earned on the excess amount (above ₹2.5 lakh threshold) is subject to income-tax at their slab rate. The online access of PF accounts has been enabled with the implementation of 2.01 CITES (centralised IT-enabled services), a project designed to enhance convenience, operational efficiency, and transparency. Members will have access to a unified digital interface to view their details, PF balances, claim status, pensionable service records, and benefits availed, thereby ensuring transparency and access to information about their PF accounts and the submission of claims. The updated system allows EPF members to avail services at any authorised location across the country, similar to banking services where customers do not have to visit a particular branch.
Earlier this week, EPFO introduced the Amnesty Scheme 2026, providing a one-time opportunity for establishments operating exempted Provident Fund Trusts to regularise their status. As reported by Zee News, the Labour and Employment Ministry announced that the Scheme will remain open for a period of six months. The EPFO's Amnesty Scheme 2026 applies to establishments that have been operating a Provident Fund Trust recognised under the Income Tax Act, 1961 but do not possess a formal exemption notification from the appropriate central or state government. The Scheme aims to bring such trusts within a uniform statutory framework while ensuring compliance with applicable legal provisions.
