New Delhi: If you work for a private company and a portion of your salary goes into a Provident Fund (PF) account, you are in for some good news. The central government pays interest on PF balances every financial year. The government has announced an interest rate of 8.25% for the financial years 2025 and 2026, and this amount will soon start reflecting in accounts.
The EPFO has stated that the process of crediting 8.25% interest to all EPF accounts will begin on July 15. Interest payments totalling over ₹1.44 lakh crore will be transferred to subscribers’ accounts via the EPFO’s new centralised IT system. According to media reports, Union Minister for Labour and Employment Mansukh Mandaviya has shared this significant update.
Major Update from the Cabinet Minister
According to media reports, Union Labour and Employment Minister Mansukh Mandaviya stated that the EPFO will transfer the interest for the 2025-26 period to all subscribers’ accounts on July 15. He further noted that the implementation of the centralized IT platform has reduced the time required for this process.
Previously, this amount used to be credited during September or October. However, the process has now been streamlined and automated, significantly reducing processing time. The government had provided an interest rate of 8.25% for the previous financial year (2024-25) as well.
How Much Interest Can You Earn?
Did you know that for private-sector employees, the PF is considered a mandatory government savings scheme? 12% of an employee’s salary is contributed to this account, while the company also contributes an equal 12%. Of the company’s contribution, 89.33% is transferred to the Employees’ Pension Scheme (EPS). Interest is earned on the amount deposited in the EPF account. For instance, if you have ₹2 lakh in your PF account, you would easily earn over ₹16,000 in interest.
How to Check Your Balance
You do not need to go anywhere to check your PF account balance; you can check it from the comfort of your home. You can easily do this by visiting the official EPFO website, epfindia.gov.in.
Once there, click on ‘e-Passbook’. You will then need to enter your UAN, password, and the captcha code. After this, details related to your PF account will be displayed. You will see the member ID; selecting it will allow you to view your PF balance on the e-Passbook.
It is worth noting that the central government provides interest on the deposited amount every financial year. According to a report, there are approximately 8 crore PF subscribers across the country. The government’s objective is to pay interest on the deposited funds.
