EPF interest rate 2025-26 is 8.25%: when it reaches your passbook, how EPFO calculates it month by month, and when your PF stops earning interest
The EPF interest rate for 2025-26 is 8.25% a year — recommended by EPFO’s Central Board of Trustees on 2 March 2026, the same as 2024-25 and 2023-24. After the Government notifies the rate, EPFO credits it once a year to every account; for 2024-25 it reached all members by July 2025. Interest is compounded on the monthly running balance: your opening balance earns the full year’s interest, and each month’s contribution earns interest only for the months after it is deposited. If you have left your job, your account keeps earning until it becomes inoperative — 3 years after retirement at 55 or later (retire at 60 → interest up to 63; leave before 55 → interest till you turn 58).
Key facts Last verified: 15 Oct 2026
| Item | Details | Source |
|---|---|---|
| Rate for 2025-26 | 8.25% a year, recommended by CBT (239th meeting, 2 Mar 2026); credited after Government notification | PIB — Ministry of Labour, 2 Mar 2026 |
| Rate for 2024-25 | 8.25% | PIB — CBT 237th meeting |
| Rate for 2023-24 | 8.25% | PIB — CBT recommendation |
| Credit timing (2024-25) | Credited to all members by July 2025 | PIB — CBT 238th meeting, 13 Oct 2025 |
| Method | Compound interest on monthly running balance at the rate declared for each year | EPFO FAQ |
| Inoperative account | 36 months after retirement on or after age 55 → stops earning interest; retire before 55 → interest till 58 | EPFO FAQ |
| Late deposit by employer | Member gets full interest for each due month once dues are recovered | EPFO FAQ |
Every year around summer, Ganesh from Solapur opens his PF passbook to see if “the interest has come”. In March he heard the news that the rate would be 8.25%, but his passbook showed nothing until the Government notified it and EPFO ran the annual credit. That’s normal: the rate is announced first, and the money appears later, in one go, for the whole year.
EPF interest rate by year
| Financial year | Rate | Status |
|---|---|---|
| 2025-26 | 8.25% | Recommended by CBT on 2 Mar 2026; credited after Government notification |
| 2024-25 | 8.25% | Credited to all members by July 2025 |
| 2023-24 | 8.25% | Credited |
How the interest is calculated
EPFO credits compound interest on the monthly running balance. In plain words:
- Your opening balance on 1 April earns interest for the full 12 months.
- Each month’s contribution (yours + employer’s EPF share) earns interest only from the month after it reaches your account.
- All of it is added up and credited once, at the year’s rate. Next year, that interest becomes part of the opening balance — so it compounds.
Worked example (8.25%; our calculation):
| Part | Working | Interest |
|---|---|---|
| Opening balance ₹2,00,000 | ₹2,00,000 × 8.25% | ₹16,500 |
| Monthly deposit ₹5,000 for 12 months | Earn for 11, 10, … 0 months = 66 month-units → ₹5,000 × 66 × 8.25% ÷ 12 | ₹2,269 |
| Total for the year | ≈ ₹18,769 |
So the closing balance is about ₹2,00,000 + ₹60,000 + ₹18,769 = ₹2,78,769. Your passbook figure may differ slightly by when each deposit was made. Project your retirement corpus with the EPF calculator.
Only the EPF part earns this interest. The employer’s 8.33% EPS (pension) share goes to the pension fund and does not earn PF interest — it decides your pension instead. See EPS pension formula.
When will 2025-26 interest show in my passbook?
- The rate becomes final only after the Government notifies it; then EPFO runs the annual credit.
- In the passbook, look for the interest entry for financial year 2025-26 (employee share and employer share shown separately).
- Check the balance by SMS, missed call, UMANG or the passbook site — see check PF balance.
“PF interest not credited” — common reasons
| Reason | What to do |
|---|---|
| Annual credit not yet run for your account | Wait a few weeks after the notification and check again |
| Two UANs / old PF not transferred | Interest sits in the old account; transfer it — see PF transfer online |
| Account inoperative (see below) | No interest after that date — withdraw it |
| Employer deposited late | You still get full interest for each month once the dues are recovered; raise a grievance on EPFiGMS if it never arrives |
| Passbook not updated / KYC mismatch | Check name, date of birth, Aadhaar in KYC — see EPFO KYC update |
When does PF stop earning interest?
An EPF account becomes inoperative 36 months (3 years) after you retire on or after age 55, and then stops earning interest.
| You left the job at… | Interest continues until about… |
|---|---|
| Age 50 (voluntarily, before 55) | Age 58 |
| Age 55 (retirement) | Age 58 |
| Age 60 (retirement) | Age 63 |
If you change jobs, transfer the old PF instead of leaving it; if you’ve retired, withdraw it before it goes inoperative — see withdraw PF online.
Frequently asked questions
What is the PF interest rate for 2025-26?
8.25% a year. EPFO’s Central Board of Trustees recommended it on 2 March 2026, the same rate as 2024-25 and 2023-24. It is credited after the Government notifies it.
When will PF interest for 2025-26 be credited?
After the Government notifies the rate, EPFO credits it to all accounts in one annual run. For 2024-25, interest reached all members by July 2025.
How is EPF interest calculated?
As compound interest on the monthly running balance. The opening balance earns a full year’s interest; each month’s contribution earns interest from the month after it is credited; the total is credited once a year.
Does PF earn interest after I leave my job?
Yes, until the account becomes inoperative — 36 months after retirement on or after age 55. If you leave before 55, interest continues until you turn 58.
Does the EPS (pension) amount earn interest?
No. The 8.33% employer share that goes to EPS is used for your pension and does not earn EPF interest.
My employer paid PF late. Do I lose interest?
No. Once EPFO recovers the dues, you get full interest for each due month; the employer pays penal interest and damages.
Official links
Use only these government websites. HumainOne is not connected to any of them.
- PIB — CBT recommends 8.25% for 2025-26239th CBT meeting
- EPFO FAQsInterest method, inoperative accounts
- EPF passbookSee interest credit (UAN login)
- EPFO helplinePF queries
Disclaimer: HumainOne is an independent information website. We are not affiliated with UIDAI, the Income Tax Department, EPFO, NPCI, the Election Commission, the Government of Maharashtra or any government body. We do not accept applications, documents or fees. Information is checked against official sources on the date shown but rules change — always confirm on the official website before acting. Calculators give estimates, not official figures, and this is not tax or legal advice.