- Employees Provident Fund interest rate set at 8.25% per annum for FY26 by EPFO
- Monthly EPF interest is approximately 0.688%, calculated on the closing balance
- EPF contributions include employee and employer shares, with employer split between EPF and EPS
The Employees' Provident Fund Organisation (EPFO) has set the interest rate on Employees' Provident Fund (EPF) deposits at 8.25% per annum for FY26. At this rate, a PF balance of Rs 1 lakh can earn approximately Rs 8,250 in interest over a year, although the actual interest earned depends on the balance maintained during each month and the contributions made during the year.
The EPF interest for FY26 has been credited last month, with the interest rate working out to approximately 0.688% per month. Since EPF interest is calculated on a monthly basis using the closing balance, the amount credited to an individual's account will vary depending on their accumulated corpus and monthly contributions.
Ahead of this, let's take a look at how to calculate your monthly EPF earnings at the 8.25% p.a.
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EPF Interest: How Is It Calculated?
EPF interest is calculated every month based on the closing balance in the account. The interest accumulated throughout the financial year is then credited to the member's EPF account.
For example, if the applicable monthly rate is around 0.688%, a PF balance of Rs 1 lakh would earn approximately Rs 688 for a month when the entire balance remains unchanged. Over a full year, this translates to roughly Rs 8,250, assuming a constant balance.
EPF contributions involve both the employee and employer, and the employer's contribution is split between EPF and the Employees' Pension Scheme (EPS). For instance, consider a basic salary and dearness allowance of Rs 50,000 per month, with contributions calculated on the statutory wage ceiling of Rs 15,000:
Employee's EPF contribution: Rs 1,800 per month
Employer's EPF contribution: Rs 550 per month
Employer's EPS contribution: Rs 1,250 per month
Total monthly EPF contribution: Rs 2,350
How To Check EPF Interest Credit Online
Once the interest is credited, members can check the updated amount through their EPFO e-passbook. To check your EPF interest credit:
- Visit the official EPFO member portal and log in.
- Go to the “View” section.
- Select “Passbook” from the dropdown menu.
- Log in to the passbook portal using your UAN and password.
- Select the relevant Member ID from the list.
- Click “View Passbook” to see your contribution and interest entries.
- You can also download the passbook using the “Download PDF” option.
After the interest is credited, the passbook should reflect the relevant interest entry for the financial year.
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Why Is EPF Interest Sometimes Not Reflected?
EPF interest is accrued for the financial year but may not immediately appear in every member's passbook for several reasons. One reason is that the interest rate must first be officially notified before EPFO can process the credit.
The large number of EPFO subscribers can also mean that disbursement is processed and reflected in accounts in stages. In some cases, incomplete KYC or Aadhaar authentication may contribute to delays.
Certain inactive accounts are also subjected to different credit rules, which can affect when the interest becomes visible. Therefore, if the interest amount is not immediately visible in your EPF passbook, members may need to wait for the crediting process to be completed before raising a query.
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