Top News

EPF Interest 2026: If you have been repeatedly refreshing your EPF passbook, your wait is almost over. The Employees' Provident Fund Organisation (EPFO) is set to credit the interest amount to approximately 34 crore accounts for the financial year 2025-26 by July 15. While in previous years interest was typically credited around October or November, this year it is being done much earlier.

This time, a total amount exceeding ₹1.44 lakh crore is scheduled to be credited as interest. This marks the first large-scale interest payout executed through the EPFO's new Centralized IT System (CITES).

The interest rate, approved by the Ministry of Finance last month, remains unchanged at 8.25% for the third consecutive year. Let us look at the monetary breakdown of this 8.25% interest based on your PF balance and understand how it is calculated.

What will be the earnings on balances ranging from ₹5 lakh to ₹1 crore?

The interest for the financial year 2025-26 is calculated based on the total fund accumulated up to March 31, 2026. This interest will reflect in your passbook by July 15. Based on simple calculations, the interest earned on your PF balance works out as follows:

On a PF balance of ₹5 lakh: You will earn ₹41,250 in interest, and the total balance will become ₹5,41,250 after the interest is credited.

On a PF balance of ₹10 lakh: You will earn ₹82,500 in interest, and the total balance will become ₹10,82,500 after the interest is credited.

On a PF balance of ₹50 lakh: You will earn ₹4,12,500 in interest, and the total balance will become ₹54,12,500 after the interest is credited. On a PF balance of ₹1 crore: You will earn ₹8,25,000 in interest, bringing the total balance to ₹1,08,25,000 after the interest is credited.

Before the interest is credited, immediately check your EPFO ​​member portal or the UMANG app to ensure your KYC details are up to date. Outdated or incorrect KYC details are the most common reason for delays in interest crediting and claim processing.

How is EPF interest calculated? Know the rules

EPF interest is calculated every month, though the amount is credited to your account once a year at the end of the financial year. The calculation works as follows:

Monthly Closing Balance: EPFO ​​uses your account balance at the end of each month as the basis. Interest for the entire year is earned on the closing balance of the previous financial year.

Monthly Rate: The annual interest rate is divided by 12 (e.g., 8.25% ÷ 12 = 0.6875% per month).

New Contributions: New amounts deposited during a month are not included in that month's interest calculation; instead, they are added to the opening balance of the following month. Interest on new PF contributions made during the year accrues from the first day of the month following the deposit until March 31st.

Rules on Withdrawal: If you withdraw PF funds mid-year, interest on the withdrawn amount is earned only up to the month immediately preceding the withdrawal; no interest accrues on that portion thereafter.

Rounding Off and Total: Interest from all 12 months is aggregated and credited to the account at the end of the financial year. Finally, EPFO ​​rounds off the total interest amount to the nearest whole rupee.

Thanks to the new CITES system, interest is being credited much faster this time. Furthermore, future processes—such as claims, account transfers, and other EPFO ​​services—will become significantly faster and easier than before.

How to check your balance on the member passbook portal? Step-by-step process

If you wish to check whether the 8.25% interest for the financial year 2025-26 has been credited to your account, ensure that your Universal Account Number (UAN) is activated. Then, follow these steps:

Step 1: First, visit the EPFO ​​member passbook portal.

Step 2: Log in using your UAN, password, and captcha code.

Step 3: Verify your identity by entering the OTP sent to your Aadhaar-linked mobile number.

Step 4: Next, select the 'View Passbook' option. Here, you can view your latest EPF balance and check whether the interest for FY26 has been credited.

Disclaimer: This content has been sourced and edited from Amar Ujala. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.