EPF Interest Rate 2026: Current Rates and How to Calculate
Reviewed by: Fibe Research Team
- Updated on: 11 May 2026
The Employee Provident Fund or EPF, is a simple way for salaried individuals to build a retirement fund over time. For the Financial Year 2025-26, the Employees’ Provident Fund Organisation (EPFO) has set the interest rate at 8.25% p.a.
Read on to know more about this EPF rate and its calculation.
[Source: Declaration of EPF ROI – Official EPFO website]
Table of Contents
Overview of the Current EPF Interest Rate (FY 2025-26)
Here are some key points you should know:
- Latest interest rate: The EPFO has retained the interest rate at 8.25% for the Financial Year 2025-26
- Applicable period: This rate was applicable from 1 April 2025 up to 31 March 2026
- How interest is calculated: Interest is calculated every month on the closing balance
- When interest is credited: The total interest is credited to your EPF account once a year by EPFO
- Inactive accounts: No interest is paid if there has been no contribution to the account for the last 36 months
How to Calculate the EPF Interest?
EPF interest may sound complex, but it is quite simple once you break it down. The interest is calculated every month on your closing balance and then added to your account at the end of the financial year.
To calculate your EPF interest, here are the key details you need to understand:
- Current EPF balance: This is the total amount already saved in your EPF account. Every month, interest is calculated on this balance, so a higher balance means more interest earned.
- Monthly salary: Your EPF contribution is based on your basic salary and dearness allowance. These 2 components decide how much goes into your EPF every month.
- Contribution share: Both you and your employer usually contribute 12% of your basic salary and DA. A part of your employer’s contribution is also allocated to the pension scheme. And the rest goes into your EPF balance.
- Age and retirement timeline: While this is not used in the formula directly, it helps you estimate how much your EPF savings can grow over time. The earlier you start and the longer you stay invested, the bigger your final corpus can be.
Here’s an example:
| Particulars | Amount |
|---|---|
| Interest rate | 8.25%/12 = 0.6875% |
| First-month interest on the EPF contribution | Nil |
| EPF balance at the end of the first month | ₹10,750 |
| EPF contribution for the second month | ₹10,750 |
| Total amount accumulated after two months | ₹21,500 |
| Interest accrued by the end of the second month | ₹147.81 (₹21,500 × 0.6875%) |
| EPF contribution for the third month | ₹10,750 |
| Amount accumulated by the end of the third month | ₹32,250 |
| Interest accrued | ₹221.72 (₹32,250 × 0.6875%) |
*Please note that the actual interest may vary slightly based on your monthly contributions and total balance.
This process continues every month. Interest is calculated on the updated balance and then added together for the full year. And if you find this manual calculation confusing, you can always use an EPF calculator to get a quick estimate.
Here are a couple of important things to remember:
- Salary limit: EPF contributions are generally calculated on a salary limit of ₹15,000
- Higher salary case: If your salary is above this limit, your employer may still choose to contribute only up to this ceiling
Over time, your regular contributions and the interest earned help you build a steady retirement fund without needing active effort every month.
[Source: EPF calculation – ClearTax]
Also Read: How To Invest Your EPF Savings?
Tabulation of EPF Rates for the Past 20 Years
Here is a table of the interest rates provided under this scheme during the last 20 years:
| Financial Year | Annual Interest Rate (%) |
|---|---|
| 2025-26 | 8.25% |
| 2024-25 | 8.25% |
| 2023-24 | 8.15% |
| 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% |
| 2014-15 | 8.75% |
| 2013-14 | 8.75% |
| 2012-13 | 8.50% |
| 2011-12 | 8.25% |
| 2010-11 | 9.50% |
| 2009-10 | 8.50% |
| 2008-09 | 8.50% |
| 2007-08 | 8.50% |
| 2006-07 | 8.50% |
[Source: EPFO interest rates – EPFO website]
EPF Withdrawal Process
You can withdraw your EPF amount online. Here’s how the process works:
- Check eligibility: Make sure you meet the withdrawal conditions, such as retirement, unemployment or specific needs like medical or education
- Link KYC details: Ensure your Aadhaar, PAN and bank account are linked and verified with your UAN
- Visit EPFO portal: Go to the official EPFO member portal and log in using your UAN and password
- Select claim option: Click on ‘Online Services’ and choose ‘Claim (Form 31, 19 or 10C)’ based on your requirement
- Verify details: Check your personal, employment and bank details before proceeding
- Submit claim: Enter the required details, select the withdrawal reason and submit your claim request
- OTP verification: Authenticate your request using the OTP sent to your registered mobile number
- Track status: You can track your claim status online through the EPFO portal
- Receive funds: Once approved, the amount is credited directly to your bank account within a few days
The process is fully online, so you can complete it easily from the comfort of your home.
[Source: EPFO Withdrawal – ClearTax]
It is also important to note that you generally can’t withdraw from an EPF account unless for the reasons outlined by the organisation. Thankfully, with Fibe’s Instant Personal Loans, you don’t have to worry about it. You can get up to ₹10 lakhs for your urgent or planned needs at affordable interest rates.
You can get these funds with ease because the eligibility criteria are simple and the documents required are basic. Download our Personal Loan App or visit our website to get funds in minutes.
FAQs on the EPF Rate of Interest
How to calculate the EPF interest?
Follow these steps to compute returns on an Employee’s Provident Fund account:
- Add the monthly balances
- Multiply the amount with the applicable interest rate
- Divide it by 12 to know the monthly interest amount
You can also use an EPF interest calculator for quick and accurate estimates. The tool is free and you just need to enter the contribution details.
Which is better, an EPF or FD?
Fixed deposits are more flexible and much easier to manage, so you can plan them based on your needs. EPF does have some restrictions and you may face penalties if you withdraw early. That said, EPF is meant for the long term and helps you build a retirement fund over time. So it really comes down to what works better for you and what you are planning for.
What is the highest EPF interest rate?
The highest rate was 12%, which was applicable from 1989 to June 2001.
How is EPF calculated on salary?
Here is how the Employee’s Provident Fund on salary:
- It is calculated on salary with the employee’s and employer’s contributions as 12%
- An employee’s contribution includes their basic pay along with DA
- The employer’s contribution is split as 8.33% to the Employee Pension Plan and 3.67% is added to the Provident Fund
How much is the PF deduction from salary?
A total of 12% of the basic pay and DA is deducted from an employee’s salary.
What is the interest rate of EPF in the last 10 years?
Here is a tabular overview of Employee Provident Fund rates for the past decade:
| Financial Year | Interest (% p.a.) |
|---|---|
| 2025-2026 | 8.25% |
| 2024-2025 | 8.25% |
| 2023-2024 | 8.15% |
| 2022-2023 | 8.15% |
| 2021-2022 | 8.10% |
| 2020-2021 | 8.50% |
| 2019-2020 | 8.50% |
| 2018-2019 | 8.65% |
| 2017-2018 | 8.55% |
| 2016-2017 | 8.65% |
What is 12% of PF?
It simply means 12% of your basic salary and dearness allowance is deducted every month and added to your EPF account. Your employer also contributes 12%. But a part of it goes to the pension fund and the rest is added to your EPF.
Is 100% withdrawal of PF amount withdrawable?
Yes, you can withdraw your full EPF amount, but only in certain situations like retirement or if you are unemployed for more than 2 months. For other needs like medical or education, you can withdraw only a part of the amount.
