EPFO to Decide on Interest Rate; Likely to Remain Unchanged for Third Consecutive Year

New Delhi: The Employees’ Provident Fund Organisation (EPFO) is set to take a decision on its interest rate for the current financial year. The Central Board of Trustees (CBT) of EPFO will meet on March 2, where the interest rate for subscribers is expected to be announced. Sources indicate that the interest rate is likely to remain unchanged at 8.25% for the third consecutive year.

According to insiders, EPFO is prepared to maintain the interest rate of 8.25% on provident fund deposits, as it has sufficient surplus from its investments to support this rate for the current year. However, the organisation may need to explore new investment opportunities in the coming years or consider the possibility of slightly lower returns in the next financial year. EPFO currently manages a fund exceeding ₹28 lakh crore.

How EPFO Invests Its Fund
EPFO allocates 45-65% of new funds into government securities, 20-45% into bonds and other debt instruments, 5-15% into equities through ETFs, and up to 5% into short-term debt. The organisation is also developing an Interest Stabilisation Reserve Fund, which aims to provide members with a stable and consistent interest rate despite market fluctuations.

Potential Reforms Ahead
The Central Board of Trustees, chaired by the Minister of Labour and Employment, is EPFO’s highest decision-making body. Its previous meeting on October 15, 2025, announced several reforms to simplify PF withdrawals. Sources suggest that the upcoming meeting may introduce additional improvements to enhance member transactions, including technical upgrades to the EPFO website and faster processing of withdrawals and claims. However, the detailed agenda for the March meeting has not been officially released.