The EPF interest rate is declared annually by the EPFO and isn't fixed by law — it moves with the fund's actual investment performance each year. Project your own EPF balance using the EPF Calculator once you have the current rate.
Current Rate
8.25% per annum, declared for FY 2025-26. This is the rate credited monthly (compounded annually) on the EPF portion of both employee and employer contributions.
How Contributions Split
| Contributor | Rate | Goes To | Earns EPF Interest? |
|---|---|---|---|
| Employee | 12% of basic + DA | Full amount to EPF | Yes |
| Employer | 12% of basic + DA | 3.67% to EPF, 8.33% to EPS (pension) | Only the 3.67% EPF portion |
Rate History (Approximate)
EPF interest has ranged between roughly 8.1% and 8.65% over the past decade, with the rate typically revised down slightly in years when EPFO's underlying debt and equity investments underperform, and held steady or nudged up in stronger years. There's no guaranteed minimum — treat any single year's rate as a snapshot, not a long-term promise.
Key Things to Know
- Interest compounds annually, credited monthly. Your account is credited interest for each month based on the closing balance, but the total is compounded and reflected once a year in your passbook.
- Voluntary Provident Fund (VPF) extends your contribution with no cap, earning the same rate as mandatory EPF — a useful lever for disciplined long-term savers, subject to the Rs 2.5 lakh tax-free interest threshold.
- The EPFO passbook is authoritative for past balances; a calculator projection is only as accurate as the future rate assumption you feed it, which is inherently uncertain since next year's rate isn't set in advance.
- This rate is separate from PPF's rate, which is set quarterly by the government and typically differs from EPF's — don't assume the two move together.