India’s retirement fund body, the Employees’ Provident Fund Organisation (EPFO), has fixed the interest rate on Provident Fund (EPF) deposits at 8.25% for the financial year 2025-26.
The decision was taken at a meeting of the Central Board of Trustees (CBT), chaired by Union Labour and Employment Minister Mansukh Mandaviya.
The CBT is the highest decision-making body of the EPFO.
Despite global economic challenges, the government said EPFO’s financial position remains strong, allowing it to offer stable and consistent returns to crores of account holders.
One-Time Amnesty Scheme for Trusts
A major highlight of the meeting was the approval of a one-time amnesty scheme.
This scheme is meant for trusts covered under the Income Tax Act but not yet brought under the EPF Act.
It will remain valid for six months.
The aim is simple — bring more companies and trusts into the legal framework and protect employees’ retirement benefits.
There’s relief too.
Trusts that already offer benefits equal to or better than legal requirements will get waiver on penalties and interest.
New Social Security Schemes Coming Soon
The board also cleared new social security schemes under the Social Security Code 2020.
This will help shift smoothly from the old rules to the new system.
Three major schemes are set to replace the current ones:
EPF Scheme (new version)
EPS 2026 (Employees’ Pension Scheme)
EDLI Scheme 2026 (Employees’ Deposit Linked Insurance)
These updated schemes will give a stronger legal foundation to provident fund, pension, and insurance benefits.
Big Relief for Inactive Accounts
The EPFO has also taken a step to clear long-pending inactive accounts.
A pilot project has been approved to automatically settle accounts that have been inactive for a long time.
Here’s how it will work:
Accounts with ₹1,000 or less unclaimed balance will be auto-settled first.
If the pilot is successful, it will be extended to accounts with balances above ₹1,000.
This move could help thousands of members recover forgotten small amounts without lengthy paperwork.
Stronger Investment Monitoring
The board has also approved a new Standard Operating Procedure (SOP) to monitor investments.
The goal is to increase transparency and ensure safer management of EPFO funds.
With a steady 8.25% interest rate, new schemes, relief measures for trusts, and auto-settlement of inactive accounts, EPFO is clearly trying to make the system simpler, stronger, and more member-friendly.
