EPF Interest Rate 2026-27: EPFO PF Rate History & Calculation
Current EPF interest rate, full rate history since 2009, how EPFO calculates monthly interest, and when it is credited to your account.
Calculate Your EPF Balance →8.25%
FY 2025-26 Rate
Latest confirmed rate
3 yrs
Interest After Exit
36 months post last contribution
₹2.5L
Tax-Free Contribution
Interest exempt up to this limit
EPF Interest Rate for FY 2025-26: 8.25%
The EPF interest rate for FY 2025-26 is 8.25% per annum, ratified by the EPFO Central Board of Trustees. This is the same rate as FY 2024-25, marking two consecutive years of stability at 8.25%.
The rate for FY 2026-27 has not been announced yet as of March 2026. The CBT typically meets between February and May to fix the rate for the ongoing financial year. Based on current government securities yields, analysts expect the rate to remain at 8.25%.
Note: The CBT-approved rate requires Ministry of Finance concurrence before it is officially notified. There can be a gap of several months between the CBT decision and formal notification.
EPF Interest Rate History (2009-10 to 2025-26)
Source: EPFO official notifications. Rate is annual, credited at financial year end.
| Financial Year | Interest Rate (% p.a.) | Note |
|---|---|---|
| 2025-26← Latest | 8.25% | Same as prior year |
| 2024-25 | 8.25% | Confirmed by CBT |
| 2023-24 | 8.25% | Confirmed by CBT |
| 2022-23 | 8.15% | |
| 2021-22 | 8.1% | 4-decade low |
| 2020-21 | 8.5% | |
| 2019-20 | 8.5% | |
| 2018-19 | 8.65% | |
| 2017-18 | 8.55% | |
| 2016-17 | 8.65% | |
| 2015-16 | 8.8% | |
| 2014-15 | 8.75% | |
| 2013-14 | 8.75% | |
| 2012-13 | 8.5% | |
| 2011-12 | 8.25% | |
| 2010-11 | 9.5% | 2-decade high |
| 2009-10 | 8.5% |
How EPF Interest is Calculated
EPF interest calculation has two phases: monthly accrual and annual crediting.
Step 1 — Monthly interest accrual
At the end of each month, interest is calculated on the closing balance:
Monthly interest = (Annual rate ÷ 12) × Opening balance for that month
For 8.25% annual rate: monthly rate = 8.25% ÷ 12 = 0.6875%
Step 2 — Annual crediting
The 12 months of accrued interest are summed and credited to the EPF account once on March 31 (end of financial year). The interest itself earns interest in the next year (compound effect).
Example calculation
Employee: Basic + DA = ₹30,000/month | Rate: 8.25%
- Employee EPF contribution = 12% × ₹30,000 = ₹3,600/month
- Employer EPF share = 3.67% × ₹15,000 (wage ceiling) = ₹550/month
- Total monthly deposit = ₹3,600 + ₹550 = ₹4,150/month
- Interest on ₹4,150 in month 1 = 0.6875% × ₹4,150 = ₹28.54
- Balance grows each month as contributions + accrued interest compound
Tip: Our EPF Calculator uses FY-wise rates from EPFO (including historical rates back to 2009) and models VPF, wage ceiling, and partial withdrawals.
When is EPF Interest Credited to Your Account?
EPF interest is officially credited on March 31 each year. However, there is often a practical delay:
- CBT approves the rate (typically February–May of the following FY)
- Ministry of Finance concurs
- EPFO credits the interest to members' passbooks
This means your EPFO e-Passbook may show the FY 2024-25 interest as late as August–October 2025. The interest is backdated to March 31 once credited.
Interest after leaving a job
After your last employer stops contributions, interest continues for up to 36 months (3 years). After this, the account becomes "inoperative" and stops earning interest. To reactivate:
- Transfer to new employer via EPFO portal
- File a withdrawal claim (Form 19/31)
- Reactivate by linking UAN to a new employer
Is EPF Interest Taxable in 2026?
As per the Finance Act 2021 (effective FY 2021-22), EPF interest is partially taxable:
| Employee Contribution | Interest Treatment |
|---|---|
| Up to ₹2.5 lakh/year | Fully tax-free |
| Above ₹2.5 lakh/year (non-government employees) | Interest on excess is taxable at slab rate |
| Up to ₹5 lakh/year (government employees with no employer contribution to NPS) | Fully tax-free |
Note: The ₹2.5 lakh limit applies to the employee's own EPF contribution only, not the employer's share.
EPF Interest Rate vs Other Savings Options (2026)
| Instrument | Interest Rate | Tax on Interest |
|---|---|---|
| EPF (FY 2025-26) | 8.25% | Exempt up to ₹2.5L contribution |
| PPF (FY 2025-26) | 7.1% | Fully exempt |
| NPS (market-linked) | ~9-11% (equity) | 60% tax-free at maturity |
| SBI FD (1–2 year) | ~6.8-7.0% | Taxable at slab rate |
| NSC | 7.7% | Taxable (80C deductible) |
Rates as of March 2026. NPS returns are indicative and market-linked.
For a full comparison of EPF and NPS returns, see our EPF vs NPS detailed guide.
See How Rate Changes Affect Your EPF Corpus
Model EPF balance with FY-wise rates, VPF, wage ceiling, and partial withdrawals.
Open EPF CalculatorFrequently Asked Questions
What is the EPF interest rate for 2025-26?
The EPF interest rate for FY 2025-26 is 8.25% per annum, as announced by the EPFO Central Board of Trustees. This rate is the same as FY 2024-25.
Has the EPF interest rate for 2026-27 been announced?
As of March 2026, the EPFO CBT has not yet officially announced the EPF interest rate for FY 2026-27. Rates are typically declared between February and May of the financial year. The 2025-26 rate of 8.25% remains the latest confirmed rate.
How is EPF interest calculated monthly?
EPF interest is calculated on the closing balance at the end of each month and accumulated. The total accumulated interest is credited to the account once at the end of the financial year (March 31). Monthly rate = annual rate ÷ 12. For 8.25%, monthly rate ≈ 0.6875%.
Is EPF interest calculated on employer contribution too?
Yes. EPF interest is calculated on the total balance — both employee contribution (12% of Basic + DA) and the employer's EPF share (3.67% of Basic + DA, up to ₹15,000 wage ceiling). The employer's EPS contribution does not earn EPF interest as it goes into a separate pension fund.
Does VPF earn the same interest rate as EPF?
Yes. Voluntary Provident Fund (VPF) contributions earn the same interest rate as EPF — 8.25% for FY 2025-26. VPF is an extension of EPF and is governed by the same EPFO rules.
Is EPF interest taxable in 2026?
EPF interest is tax-free for contributions up to ₹2.5 lakh per year (employee share). If your annual employee EPF contribution exceeds ₹2.5 lakh, the interest on the excess is taxable at your income tax slab rate. This rule has applied since FY 2021-22.
Why did the EPF interest rate drop from 9.5% in 2010-11 to 8.25%?
The EPF interest rate is linked to the yield on government securities and the EPFO's investment returns. As bond yields in India declined over the 2010s, the EPFO's investment income fell, leading to gradual rate reductions. The rate has broadly stabilised in the 8.1–8.5% range since 2018.
When is EPF interest credited to the account?
EPF interest is credited once a year, at the end of the financial year (March 31). However, the actual crediting in passbooks may happen with a delay — sometimes appearing in the EPFO passbook 2–4 months after FY end, once the CBT formally ratifies the rate.
What happens to EPF interest after leaving a job?
If you leave a job and do not withdraw or transfer your EPF, interest continues to accrue for up to 36 months (3 years) after the last contribution date. After 36 months of inactivity, the account becomes 'inoperative' and stops earning interest (until you reactivate it).
Related Calculators & Guides
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Model your exact EPF corpus with historical rates and withdrawal scenarios.
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Sources & References
Disclaimer
This article is for informational purposes only. EPF interest rates are set by EPFO CBT and subject to Ministry of Finance approval. Always verify the current rate on the official EPFO website or your passbook. This website is not affiliated with EPFO or the Government of India.