The rate of EPFO interest for the year 2026 is being actively monitored by many Indian salaried individuals as it has a direct bearing on the growth of their retirement savings. The EPFO (Employees’ Provident Fund Organisation) annually credits interest on the PF balances, and it is considered a safe and tax-free way of building a retirement fund.
The EPF interest rate as of January 10, 2026, is still at 8.25% per annum for the present financial year (FY 2025-26 running from April 2025 to March 2026). This rate was earlier established and has not been altered, thereby ensuring steady returns for over 70 million members.
The calculation of interest is done on a monthly basis on the PF account’s closing balance; however, it is added only once at the end of the financial year.
What Is the Current EPFO Interest Rate?
The EPFO rates are set at 8.25% for the financial year 2025-26 at present, which caters to the contributions made by both employees and employers. It is a trustworthy interest rate in an era when many investments are unpredictable.
How Is EPF Interest Calculated?
Eight-point-two-five percent is the yearly interest rate but the calculation of this interest is done on a monthly basis (roughly 8.25%/12 = 0.6875% per month) equivalent to your running amount. The entirety of it gets credited in one go by the middle of the following year, thus allowing for compounding to take place.
Why 8.25% Matters in 2026
This rate is better than most bank fixed deposits and remains tax-free (subject to some limits). It also indicates that longevity is projected since it even out the effect of inflation on your retirement fund.
Recent Changes and Stability
The interest rate that had been secured last year was at 8.25% and this year it is the same. This year’s hike was not considerable; however, there were rumors of higher figures in earlier discussions—no official announcements yet.
EPFO Interest Rate History (Recent Years)
| Financial Year | Interest Rate (%) | Notes |
|---|---|---|
| 2020-21 | 8.50 | Higher during early pandemic |
| 2021-22 | 8.10 | Slight dip |
| 2022-23 | 8.15 | Small recovery |
| 2023-24 | 8.25 | Stable |
| 2024-25 | 8.25 | Continued |
| 2025-26 (Current) | 8.25 | As of Jan 2026, no change |
Tax Benefits on EPF Interest
The tax exemption on interest is granted if the total annual contribution made by you is less than ₹2.5 lakh (₹5 lakh in some cases). If your contribution exceeds that amount, then the excess interest will be taxed—this is an excellent reason to check your limits.
How to Check Your PF Balance and Interest
The EPFO portal can be accessed with your UAN, or the UMANG app can be used. Your passbook displays contributions and the corresponding interest updates every time the amount gets credited.
So, the EPFO interest rate for the year 2026 stands at 8.25% which is a very good and safe growth rate for your retirement fund. The interest rate has not changed recently which is a positive aspect as well. You can visit the official EPFO website (epfindia.gov.in) today, activate your UAN, if necessary, check your latest balance and keep contributing regularly—your future self will be grateful for the steady compounding!