New Delhi: The Centre has approved an interest rate of 8.25 per cent on Employees’ Provident Fund (EPF) deposits for the financial year 2025-26, providing relief to more than seven crore subscribers of the Employees’ Provident Fund Organisation (EPFO).

The interest rate, recommended by the EPFO’s Central Board of Trustees (CBT) in March, has now received the mandatory approval from the Union Finance Ministry and is expected to be credited to subscribers’ accounts later this month.

This marks the third consecutive year that EPF subscribers will receive an interest rate of 8.25 per cent on their provident fund savings.

Interest to benefit over seven crore subscribers

The EPFO manages a massive corpus of nearly ₹28 lakh crore and is one of the world’s largest social security organisations.

The decision to retain the 8.25 per cent interest rate is expected to benefit millions of salaried employees who rely on their provident fund savings for retirement and other financial needs.

The interest amount is likely to be credited into subscribers’ accounts this month, providing an additional boost to retirement savings.

The rate was initially proposed by the Central Board of Trustees, the EPFO’s apex decision-making body, and required final approval from the Finance Ministry before implementation.

What is EPFO 3.0?

Alongside the interest rate announcement, the EPFO is preparing for the rollout of its upgraded digital platform, popularly referred to as EPFO 3.0.

The initiative aims to modernise and simplify provident fund services by expanding digital access and reducing paperwork for subscribers.

Under the new system, members will be able to undertake paperless withdrawals and transfers of provident fund savings. The upgrade is intended to reduce waiting periods, eliminate processing delays and provide quicker access to funds.

Union Labour Minister Mansukh Mandaviya had recently said that testing of the new facility had been completed and the service would be rolled out soon, although no specific launch date has been announced.

EPF withdrawals through UPI and ATMs

One of the most significant features proposed under EPFO 3.0 is the facility to withdraw provident fund money through the Unified Payments Interface (UPI) and UPI-enabled ATMs.

Under the proposed framework, subscribers may be allowed to withdraw between 50 per cent and 75 per cent of their eligible EPF balance through digital channels, depending on applicable conditions.

Subscribers will be able to view their eligible balance online and transfer the amount directly to their seeded bank accounts using a linked UPI PIN.

Once the money is credited to the bank account, members can use it for digital transactions or withdraw cash through ATMs.

The new system is expected to significantly reduce the time taken for settlement of claims and make access to provident fund savings easier and more convenient.

Faster claim settlements and enhanced digital services

The EPFO has also increased the auto-settlement limit from ₹1 lakh to ₹5 lakh, enabling members to access funds more quickly for purposes such as purchasing or constructing a house, higher education, marriage and medical emergencies.

The organisation aims to process many claims within three days under the upgraded system.

EPFO 3.0 will also introduce several new digital services, including:

  • Instant access to passbooks and account details.
  • Online correction of personal information.
  • Submission of claims without paperwork.
  • First-time Aadhaar linking through the Joint Declaration facility.
  • Face Authentication Technology (FAT) through the UMANG app for generating and activating Universal Account Numbers (UANs).
  • Automated multilingual support available round the clock.
  • Customer support through EPFO’s verified WhatsApp service.

Digital transformation of EPFO

The move towards EPFO 3.0 reflects the government’s broader push towards digitisation and ease of access to public services.

By enabling UPI-based withdrawals, faster claim settlements and paperless services, the EPFO aims to make provident fund management more user-friendly and efficient for millions of subscribers across the country.

With the approval of the 8.25 per cent interest rate and the imminent rollout of EPFO 3.0, subscribers can look forward to both attractive returns on their retirement savings and significantly improved digital services in the near future.