EPF Knowledge Base

EPF interest rate history: 1952-53 to 2025-26

EPFO declares the interest rate for each financial year (April–March) after the Central Board of Trustees meets — usually in February or March. The current rate is 8.25% p.a. for FY 2025-26.

Current rate (FY 2025-26)

8.25%

per annum

All-time high

12%

FY 1999-00

All-time low

3.00%

FY 1952–53 to 1955–56 (inception)

Years of data

financial years

Last 20 years at a glance

8.5%

9.5%

8.25%

8.5%

8.75%

8.8%

8.65%

8.55%

8.65%

8.5%

8.1%

8.15%

8.25%

Rate axis scaled between 7% and 12.5%. Hover any bar for the exact value. FY labels show the ending year (e.g. "22" = FY 2021-22).

How the EPF rate is set — and why it matters

The EPF interest rate is not fixed by law. Every year, the Central Board of Trustees (CBT) of EPFO — which includes representatives from the government, employers, and employee unions — reviews the corpus returns and recommends a rate. The Ministry of Finance then approves (or occasionally revises) it. The rate is applied to the entire balance in your EPF account at the end of the financial year.

The rate peaked in the early 1990s — touching 12% from FY 1986-87 through FY 1999-00 — when government bond yields were also elevated. As interest rates in the economy declined, EPF rates followed, landing at 8.25%–8.65% through most of the 2010s. The FY 2022-23 cut to 8.15% was the lowest rate in four decades and triggered significant debate, before recovering to 8.25% from FY 2023-24 onward.

For FY 2021-22, the 8.10% rate was the lowest since 1977-78 (when it was 7.50%). It was politically contentious because EPFO's corpus had delivered higher returns, and unions argued for at least 8.50%.

The EPF rate has beaten FD rates consistently. Over the last 10 years (FY 2016-17 to 2025-26), the average EPF rate is approximately 8.50% p.a., while the average SBI 1-year FD rate over the same period is approximately 6.5%–7.0%. Since EPF interest is also tax-exempt (for total contributions up to ₹2.5 lakh/year), the post-tax EPF return advantage is even larger for taxpayers in the 20%–30% slab.

Complete rate table: FY 1952-53 to FY 2025-26

Financial year	Rate (% p.a.)	Note
FY 2025-26 Current	8.25%
FY 2024-25	8.25%
FY 2023-24	8.25%
FY 2022-23	8.15%	Cut from 8.50% to 8.15% — the lowest in 40 years at the time of announcement
FY 2021-22	8.10%	Provisional rate; later confirmed at 8.10%
FY 2020-21	8.50%
FY 2019-20	8.50%
FY 2018-19	8.65%
FY 2017-18	8.55%
FY 2016-17	8.65%
FY 2015-16	8.80%
FY 2014-15	8.75%
FY 2013-14	8.75%
FY 2012-13	8.50%
FY 2011-12	8.25%
FY 2010-11	9.50%	One-time special rate; surplus from EPFO investments
FY 2009-10	8.50%
FY 2008-09	8.50%
FY 2007-08	8.50%
FY 2006-07	8.50%
FY 2005-06	8.50%
FY 2004-05	9.50%
FY 2003-04	9.50%
FY 2002-03	9.50%
FY 2001-02	9.50%
FY 2000-01	11.00%
FY 1999-00	12.00%
FY 1998-99	12.00%
FY 1997-98	12.00%
FY 1996-97	12.00%
FY 1995-96	12.00%
FY 1994-95	12.00%
FY 1993-94	12.00%
FY 1992-93	12.00%
FY 1991-92	12.00%
FY 1990-91	12.00%
FY 1989-90	12.00%
FY 1988-89	11.80%
FY 1987-88	11.50%
FY 1986-87	11.00%
FY 1985-86	10.15%
FY 1984-85	9.90%
FY 1983-84	9.90%
FY 1982-83	9.25%
FY 1981-82	9.00%
FY 1980-81	8.25%
FY 1979-80	8.00%
FY 1978-79	8.00%
FY 1977-78	7.50%
FY 1976-77	7.50%
FY 1975-76	7.50%
FY 1974-75	7.25%
FY 1973-74	7.00%
FY 1972-73	6.50%
FY 1971-72	6.00%
FY 1970-71	5.80%
FY 1969-70	5.80%
FY 1968-69	5.80%
FY 1967-68	5.75%
FY 1966-67	5.50%
FY 1965-66	5.00%
FY 1964-65	4.75%
FY 1963-64	4.50%
FY 1962-63	4.25%
FY 1961-62	4.00%
FY 1960-61	4.00%
FY 1959-60	3.75%
FY 1958-59	3.50%
FY 1957-58	3.25%
FY 1956-57	3.00%
FY 1955-56	3.00%
FY 1954-55	3.00%
FY 1953-54	3.00%
FY 1952-53	3.00%	EPF Scheme commenced November 1952

Frequently asked questions

When is the EPF interest credited to my account?

EPFO credits interest annually, at the end of the financial year (by 31 March, or sometimes a few months later due to processing). Until the rate is officially notified and your passbook is updated, the interest shows as "pending". You will see it on your UAN passbook once EPFO processes the credit — this sometimes happens in May–July for the preceding FY.

Is EPF interest taxable?

EPF interest is tax-free under Section 10(11) and 10(12) of the Income Tax Act, provided your total EPF + VPF contributions do not exceed ₹2.5 lakh per financial year. If you contribute more than ₹2.5 lakh/year (e.g., via VPF top-ups), the interest earned on the excess is taxable from that year onward as "income from other sources". The principal itself is never taxed at withdrawal if total service is 5+ years.

If I withdraw mid-year, do I still earn interest for that period?

No — EPF interest is calculated on the monthly running balance and credited annually. If you withdraw before the end of the financial year, you lose the interest for the months after your last credit. This is different from a bank FD, where interest accrues daily. One more reason to think carefully before mid-year withdrawals.

Why does the EPFO passbook sometimes show 0% interest for a year?

Usually because: (1) your employer stopped depositing contributions and your account went dormant — EPFO stopped paying interest on dormant accounts (no contributions for 3+ years) from 2011 onward; or (2) the rate for that year has been declared but not yet processed in EPFO's systems. Check your passbook on the UAN portal; if it shows months of contribution but 0 interest, raise a grievance on EPFiGMS.

Can EPFO change the rate retroactively?

No — once the Ministry of Finance approves the rate for a financial year and EPFO credits it, it is final. The CBT recommends the rate for the current year (typically Feb/Mar), and it applies to balances held during that year. It cannot be retrospectively revised downward once notified.

How does EPF interest compare to PPF and NPS?

PPF: Rate revised quarterly by the government (currently 7.1% for Q1 2026). EPF at 8.25% currently beats PPF. However, PPF allows contributions by anyone (including self-employed), while EPF requires employment covered under the EPF Act.

NPS: Market-linked — equity-heavy NPS Tier-1 has returned 10%–12% over 10 years but with volatility. EPF is guaranteed and risk-free.

EPF wins on safety + current yield vs both alternatives for salaried employees. VPF (voluntary top-up to EPF) at 8.25% is currently the best risk-free fixed-income instrument available to salaried employees.

Related guides

Data sourced from EPFO official circulars, Ministry of Labour & Employment notifications, and EPFO Annual Reports. Historical rates (pre-2000) are sourced from EPFO's own published records. Last verified: 2026-05-21.

Last updated 21 May 2026 · site changelog