EPF Interest Rate 2025-26: 8.25%, and How Your Interest Is Worked Out
EPF interest for 2025-26 is 8.25%, the third year running at that rate. The rate history since 2016-17, how running-balance interest is calculated, when it is credited and when it is taxed.
Updated 27 September 2026 · 4 minute read
The EPF interest rate for 2025-26 is 8.25%. The EPFO's Central Board of Trustees recommended it in March 2026, the government approved it, and EPFO notified it in July 2026 with instructions to credit it to members' accounts. It is the same rate as in 2023-24 and 2024-25.
The rate applies to the whole balance in your EPF account, your contributions and your employer's, for April 2025 to March 2026. It does not apply to the pension part of your employer's share, which goes to EPS and earns no interest in your name.
The rate over the years
| Year | EPF interest rate |
|---|---|
| 2025-26 | 8.25% |
| 2024-25 | 8.25% |
| 2023-24 | 8.25% |
| 2022-23 | 8.15% |
| 2021-22 | 8.10% |
| 2020-21 | 8.50% |
| 2019-20 | 8.50% |
| 2018-19 | 8.65% |
| 2017-18 | 8.55% |
| 2016-17 | 8.65% |
The rate for 2026-27 has not been set yet. It is usually recommended near the end of the year it applies to, so expect it around February or March 2027.
How your interest is worked out
EPF interest is calculated on your monthly running balance and credited once a year:
- Each month, the balance at the end of the previous month earns one twelfth of the annual rate. At 8.25%, that is 0.6875% a month.
- A contribution earns interest from the month after it is credited. The last month's contribution earns nothing until the next year.
- The twelve monthly amounts are added up and credited to your account at the end of the year, where they start earning interest themselves.
Say you start 2025-26 with ₹2,00,000 in EPF and ₹5,000 is credited every month:
| Interest | |
|---|---|
| Opening balance of ₹2,00,000, for 12 months | ₹16,500 |
| April's ₹5,000 for 11 months, May's for 10, and so on down to March's for none | ₹2,269 |
| Interest for the year | ₹18,769 |
The year closes at ₹2,78,769: the opening balance, ₹60,000 of contributions and the interest. EPFO's own figure can differ by a few rupees, depending on when each month's contribution reaches your account.
How much goes in each month
Your monthly credit is your 12% plus the part of your employer's 12% that is not diverted to EPS. On the PF wage ceiling, that went up on 17 September 2026 when the ceiling rose from ₹15,000 to ₹25,000: from ₹2,350 a month (₹1,800 plus ₹550) to ₹3,917 (₹3,000 plus ₹917). The EPF wage ceiling guide has the full table, and the PF deduction rules show how the split works when PF is taken on full basic instead.
When the interest shows up
EPFO credits the interest after the rate is notified, and it can take a few weeks to reach every account. A later credit does not cost you anything, because the interest is worked out on the balances through the year, up to 31 March, whenever it is posted. Check the entry in your EPF passbook on the EPFO member portal or the UMANG app, using your UAN.
Is EPF interest taxable?
For most people, no. Interest is tax-free except on your own contributions above ₹2.5 lakh a year, or ₹5 lakh if your employer does not contribute. The interest on the part above that limit is taxed every year as income from other sources, in both regimes. The limit counts your voluntary PF too, so it mainly affects high earners who put in a lot of VPF.
Withdrawals are tax-free after five years of continuous service. Before that, the employer's share and the interest become taxable when you withdraw, and TDS applies above ₹50,000; the PF withdrawal calculator works out what reaches your bank. For how EPF works overall, see EPF explained.
Frequently asked questions
What is the EPF interest rate for 2025-26?
8.25% a year, the same as 2023-24 and 2024-25. It was recommended in March 2026 and notified by EPFO in July 2026 after government approval.
How is EPF interest calculated?
On the monthly running balance. Each month's balance earns 8.25% divided by 12, and the monthly amounts are added up and credited once, at the end of the year. A contribution earns interest from the month after it is credited.
When will the 2025-26 EPF interest be credited?
EPFO has told its offices to credit it after the rate was notified in July 2026. If it is not in your passbook yet, it will be, and the amount does not shrink because it arrives later.
Is EPF interest taxable?
Only on your own contributions above ₹2.5 lakh a year, or ₹5 lakh if your employer does not contribute. Interest on everything below that limit is tax-free.
What is the EPF interest rate for 2026-27?
It has not been announced. The Central Board of Trustees usually recommends the rate near the end of the year, so the 2026-27 rate is likely around February or March 2027.