EPF Interest Rate is updated every year by the Employees Provident Fund Organisation (EPFO) in consultation with the Indian Finance Minister. The rate depends on market conditions and affects how much interest you earn on your Employee Provident Fund (EPF) savings. For the financial year 2025-26, the EPF interest rate is set at 8.10%. In this article, you will learn everything about the EPF interest rate, contribution rates from employee and employer, eligibility, and how to calculate your PF interest online using a PF calculator.
Understanding EPF Interest Rate 2025
The Employees Provident Fund (EPF) was created under the Employees Provident Fund and Miscellaneous Provisions Act of 1952 as a retirement savings plan. Every month, both you and your employer contribute equal amounts to your EPF account. EPFO manages the plan and makes sure your savings grow with interest. When you retire or under certain conditions, you can withdraw the full amount, including the interest earned.
The total amount you receive is tax-free when withdrawn, making EPF a popular saving option for salaried workers. This plan covers all companies with at least 20 employees; some smaller companies in specific industries may also be included.
Recent Update: The Government has approved an 8.15% interest rate for PF deposits for the year 2024-25. This means your savings continue to grow steadily in the current financial year.
EPF Interest Rate Highlights
| Name | EPF Interest Rate 2025 |
| Announced by | EPFO Central Board of Trustees |
| Purpose | To set the interest rate on provident fund savings based on market conditions |
| Interest Rate for 2025-26 | 8.10% |
Historical EPF Interest Rates (Last 20 Years)
| Financial Year | Annual Interest Rate (%) |
| 2025-26 | 8.10% |
| 2024-25 | 8.15% |
| 2019-20 | 8.50% |
| 2018-19 | 8.65% |
| 2017-18 | 8.55% |
| 2016-17 | 8.65% |
| 2015-16 | 8.80% |
| 2014-15 | 8.75% |
| 2013-14 | 8.75% |
| 2012-13 | 8.50% |
| 2011-12 | 8.25% |
| 2010-11 | 9.50% |
| 2005-10 | 8.50% |
| 2004-05 | 9.50% |
| 2001-04 | 9.50% |
| 2000-01 | 12% (April-June), 11% from July 2001 |
Important Points About EPF Interest Rate
- EPF contributions made from April 2025 to March 2026 will earn interest at 8.10%.
- Interest is calculated monthly but credited once every year by March 31.
- Interest added each year earns more interest the next year, helping your savings grow faster.
- If you do not make any contribution for 36 months straight, your EPF account becomes inactive.
- Interest is paid on inactive accounts only if the member has not retired.
- No interest is paid on inactive accounts for retiring members.
- Interest earned on inactive accounts is taxable.
- There’s no interest on the employer’s contribution to the Employee Pension Scheme (EPS), but pension benefits are available after age 58.
Employee and Employer EPF Contributions
Both you and your employer contribute to your EPF account based on your salary and Dearness Allowance (DA). Usually, you contribute 12% of your base salary plus DA. For smaller firms with fewer than 20 employees or specific industries like jute and beedi, this may be 10%.
Your employer also contributes 12% of your salary plus DA, but not all of it goes to your EPF account. About 8.33% of your employer’s contribution goes to the Employee Pension Scheme (EPS), capped at Rs 1,250 if your salary is Rs 15,000 or more. The rest (around 3.67%) goes to your EPF. Besides, your employer contributes 0.5% towards the Employees Deposit Linked Insurance (EDLI) scheme.
You can also voluntarily contribute more than 12% to your EPF account through the Voluntary Provident Fund (VPF). This extra contribution earns tax-free interest but your employer does not match this amount.
Who Is Eligible for EPF?
- All employees of companies with 20 or more workers are covered from their first day at work.
- Certain restrictions apply for residents of Jammu and Kashmir, who are generally not covered.
How to File EPFO e-Nomination Online
Information Needed to Use EPF Interest Calculator
- Your current age
- Your EPF account balance
- Basic monthly salary
- Expected retirement age
- Your monthly EPF contribution percentage
- Monthly Dearness Allowance
- Expected annual salary increase
How to Use a PF Interest Calculator
If you want to know how much money you will have in your EPF account when you retire, a PF calculator is helpful. You need to enter your age, basic pay, contribution rates of both employee and employer, expected salary hike percentage, retirement age, and the current interest rate (8.10% for 2025-26).
The calculator will show you an estimate of your savings including interest, so you can plan your retirement better.
Tax Benefits of EPF
EPF investments give you tax benefits under Section 80C of the Income Tax Act. You can claim up to Rs 1.5 lakh for tax deductions from your taxable income. Plus, if you keep your EPF account active for more than 5 years, the interest earned is tax-free. But if you withdraw before 5 years, the amount is subject to tax deduction at source (TDS).