EPF Interest Rate 2025-26 (8.25%) and Rates Since 2015
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The EPF interest rate for 2025-26 is 8.25% a year, the same as the two years before. Interest is calculated on your monthly running balance and credited once a year, after the Central Board of Trustees recommends the rate and the Government approves it.
Recent rates
| Financial year | Rate |
|---|---|
| 2025-26 | 8.25% |
| 2024-25 | 8.25% |
| 2023-24 | 8.25% |
| 2022-23 | 8.15% |
| 2021-22 | 8.10% |
| 2020-21 | 8.50% |
| 2019-20 | 8.50% |
| 2018-19 | 8.65% |
| 2017-18 | 8.55% |
| 2016-17 | 8.65% |
| 2015-16 | 8.80% |
EPFO publishes the full list from 1952: interest rates since 1952. Compare with bank deposits on our interest rates page.
How interest is worked out
- Each month's balance after contributions and withdrawals
- Interest at the year's rate ÷ 12 on each month's balance
- Added up for April to March
- Credited once a year as a separate passbook line
Example: with ₹1,00,000 in the account all year and no deposits, interest at 8.25% is ₹8,250. Monthly deposits earn interest from the month after they are credited.
Tax on interest
EPF interest is generally tax-free. The exception is interest on your own contributions above ₹2.5 lakh a year (₹5 lakh where the employer does not contribute), which is taxable. This mostly affects people who put large amounts into VPF.
Frequently asked questions
Is EPF interest taxable?
Interest is generally tax-free, but interest on the part of your own contribution above ₹2.5 lakh a year (₹5 lakh where the employer does not contribute) is taxable.
Does an old account keep earning interest?
Yes, unless it is classed as inoperative (for example no contributions for a long period after retirement or emigration). Transfer old balances to your current account.
Related guides on our other websites
Sources
- EPFO: interest rates on PF accumulations since 1952.
- EPFO: Wage ceiling FAQs (8.25% for 2025-26, compounded on the monthly running balance).
- PIB: CBT recommends 8.25% for 2023-24.
- Income Tax Department (tax on interest above the contribution limit).