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EPFO's CBT Keeps PF Interest Rate at 8.25% for FY 2025-26, Third Consecutive Year Without Change

EconomySocial IssuesHIGH
Target:UPSC GS-IIIMPSCBankingSSC GATeachingPrelims HighMains MediumStatic GK Link
02 Mar 2026
~2 min
Source: Indian Express
Key Data:8.25% interest rateRs 650 crore lossRs 5,300 crore surplusOver 7.8 crore subscribers
Bodies:EPFOCentral Board of Trustees (CBT)Ministry of Labour and EmploymentMinistry of Finance
Practice MCQs from today's news ▸
What This Article Covers

1.EPFO's Central Board of Trustees recommended an unchanged 8.25% interest rate on PF deposits for FY 2025-26.

2.The decision is estimated to result in a Rs 650 crore loss, to be adjusted against a previous surplus of Rs 5,300 crore.

3.The interest rate is linked to yields on government securities and equity returns, with the final approval pending from the Ministry of Finance.

The Big Picture
Prelims · HighMains · Medium

The Central Board of Trustees (CBT) of the Employees’ Provident Fund Organisation (EPFO) has recommended maintaining the interest rate on provident fund deposits at 8.25% for FY 2025-26. This marks the third consecutive year of status quo, a decision influenced by market volatility and pending ratification by the Ministry of Finance.

Exam Lens

Quick Exam Facts From News

Recommended Interest Rate8.25% for FY 2025-26
Governing BodyCentral Board of Trustees (CBT)
Estimated LossRs 650 crore
Previous Year SurplusRs 5,300 crore
Subscriber BaseOver 7.8 crore

1-Minute Revision

  • ›Recommended Interest Rate: 8.25% for FY 2025-26
  • ›Governing Body: Central Board of Trustees (CBT)
  • ›Target this Data: 8.25% interest rate for FY 2025-26 (Third consecutive year)
  • ›Target this Nodal Body: Central Board of Trustees (CBT) of EPFO, chaired by the Union Labour Minister
  • ›Target this Legal Point: Recommendation requires ratification by the Ministry of Finance

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Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

The Central Board of Trustees (CBT) of the EPFO is chaired by which Union Minister?

Q2Statement-basedHard

Consider the following statements regarding the EPFO interest rate news:

1. The interest rate for FY 2025-26 has been recommended to be increased to 8.35%.

2. The decision was taken due to expected volatility in financial markets.

3. The recommended rate now requires approval from the Ministry of Labour and Employment.

Which of the statements given above is/are correct?

Q3Data-centricMedium

For which financial year did the EPFO's Central Board of Trustees recommend an interest rate of 8.25% in its recent meeting?

Q4Application/ImpactMedium

What is a primary reason cited in the article for the EPFO's decision to keep the interest rate unchanged?

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