NEW DELHI, March 2 - The central board of trustees of the Employees' Provident Fund Organisation (EPFO), together with the labour ministry, has recommended that the interest rate credited to accounts held with the fund remain at 8.25% for the ongoing financial year 2025/26, the period that concludes on March 31.
The recommendation was finalised at a meeting between the labour ministry and the EPFO's trustees. It applies to returns on sums held within the retirement fund for the fiscal year 2025/26 and will only become effective after it receives formal approval from the finance ministry.
In a statement, the labour ministry underscored the EPFO's management approach, saying: "Despite global uncertainties, EPFO has maintained strong financial discipline, ensuring stable and competitive returns without straining the interest account."
The ministry's statement also noted the size of the organisation's funds under management, reporting a corpus in excess of 28.34 trillion rupees, which the ministry converted to $309.74 billion using an exchange rate of $1 = 91.4950 Indian rupees.
Process and timing
The approved rate for members' accounts will come into force only after the finance ministry signs off on the board's recommendation. Until that approval is granted, the suggestion remains a formal recommendation rather than a binding decision.
Implications described by officials
The labour ministry framed the recommendation as reflecting a balance between delivering competitive returns to contributors and preserving the fund's financial stability in the face of external pressures. The statement linked EPFO's ability to maintain the recommended rate to prudent financial management.
Limitations
The recommendation and the ministry's comments set out the decision-making and approval pathway and provide the EPFO's current reported corpus. Beyond those points, the statement does not provide additional detail on how the rate level was modelled or on the timeline for the finance ministry's response.
Summary
The EPFO's trustees and the labour ministry have recommended retaining the interest rate on member balances at 8.25% for fiscal 2025/26, subject to finance ministry approval. The labour ministry highlighted the fund's financial discipline amid global uncertainties and reported a corpus of over 28.34 trillion rupees ($309.74 billion). The recommendation was finalised at a meeting between the labour ministry and the EPFO central board of trustees. The rate will take effect once approved by the finance ministry.