EPF Interest Rate 2026 — Current Rate & Historical Archive
The Employees’ Provident Fund (EPF) interest rate is currently 8.25% per annum. Learn how interest compounds monthly, understand tax rules under Section 10(11), and view historical CBT notifications.
Calculated on monthly running balances; credited annually to member passbooks.
EPF Interest Rate History (Past Financial Years)
| Financial Year | Notified Rate (% p.a.) | Sanctioning Authority |
|---|---|---|
| FY 2025-26 | 8.25% | EPFO Central Board of Trustees |
| FY 2024-25 | 8.25% | Ministry of Labour & Employment |
| FY 2023-24 | 8.25% | Ministry of Labour & Employment |
| FY 2022-23 | 8.15% | Ministry of Labour & Employment |
| FY 2021-22 | 8.10% | Ministry of Labour & Employment |
| FY 2020-21 | 8.50% | Ministry of Labour & Employment |
| FY 2019-20 | 8.50% | Ministry of Labour & Employment |
| FY 2018-19 | 8.65% | Ministry of Labour & Employment |
Taxability on EPF Interest (Budget Section 10(11) & 10(12))
Interest earned on employee contributions up to ₹2,50,000 per financial year remains completely tax-exempt. Any interest accrued on employee contributions exceeding ₹2.5 lakh is categorized under "Income from Other Sources" and taxed at your marginal slab rate. EPFO maintains two separate accounts (Taxable and Non-Taxable) in your passbook to track this.
Frequently Asked Questions on EPF Interest Rates
What is the current EPF interest rate for FY 2025-26?
The current EPF interest rate is 8.25% per annum, recommended by the Central Board of Trustees (CBT) and ratified by the Ministry of Finance.
How is EPF interest calculated and credited?
Interest on EPF is calculated on a monthly running balance basis (on the closing balance of each month), but it is credited to the member’s account annually at the end of the financial year (March 31).
Is EPF interest taxable?
Under current Income Tax provisions, interest earned on employee contributions exceeding ₹2.5 lakh in a financial year (or ₹5.0 lakh if there is no employer contribution, such as for government employees) is subject to income tax.