{"id":2384,"date":"2026-10-13T21:14:47","date_gmt":"2026-10-13T15:44:47","guid":{"rendered":"https:\/\/www.tiwaripedia.com\/index.php\/2026\/10\/13\/epf-interest-rate-calculation\/"},"modified":"2026-10-13T21:18:14","modified_gmt":"2026-10-13T15:48:14","slug":"epf-interest-rate-calculation","status":"publish","type":"post","link":"https:\/\/www.tiwaripedia.com\/index.php\/2026\/10\/13\/epf-interest-rate-calculation\/","title":{"rendered":"EPF Interest Rate 2025-26 (8.25%): How PF Interest Is Calculated With Example"},"content":{"rendered":"

Last updated: October 2026 \u00b7 3 min read<\/em><\/p>\n

The Employees’ Provident Fund (EPF)<\/b> is a retirement savings scheme run by the EPFO for salaried employees. For 2025-26<\/b>, EPFO retained the interest rate at 8.25%<\/b>, the same as 2024-25, benefiting over 7 crore members.<\/p>\n

\"Infographic:
EPF Interest Rate 2025-26 (8.25%): How PF Interest Is Calculated With Example \u2013 infographic by Tiwaripedia<\/figcaption><\/figure>\n

How contributions work<\/h2>\n
Component<\/th>Contribution<\/th><\/tr><\/thead>
Employee<\/td>12% of basic salary + dearness allowance<\/td><\/tr>
Employer<\/td>12% of basic + DA, split as below<\/td><\/tr>
Employer share to EPS (pension)<\/td>8.33% of wages, capped at \u20b915,000 wages (max \u20b91,250 a month)<\/td><\/tr>
Employer share to EPF<\/td>Remaining 3.67% (more if wages exceed the cap)<\/td><\/tr>
Employer to EDLI (insurance)<\/td>0.5% (paid separately)<\/td><\/tr><\/tbody><\/table><\/figure>\n

How interest is calculated<\/h2>\n

Interest is calculated monthly<\/b> on the running balance at the end of each month, using rate \u00f7 12, and is credited to your account once a year<\/b> after the financial year ends. No interest is paid on the EPS (pension) portion.<\/p>\n

Worked example<\/h2>\n

Basic + DA = \u20b930,000 a month. Employee contribution = \u20b93,600; employer’s EPF share = \u20b93,600 – \u20b91,250 = \u20b92,350. Monthly EPF credit = \u20b95,950.<\/p>

With an opening balance of \u20b92,00,000, monthly interest at 8.25% \u00f7 12 (0.6875%) is calculated on each month’s closing balance. Over the year, total interest comes to roughly \u20b919,000-\u20b919,500, credited after March.<\/p>\n

EPF interest rate history (recent)<\/h2>\n
Year<\/th>Rate<\/th><\/tr><\/thead>
2025-26<\/td>8.25%<\/td><\/tr>
2024-25<\/td>8.25%<\/td><\/tr>
2023-24<\/td>8.25%<\/td><\/tr>
2022-23<\/td>8.15%<\/td><\/tr>
2021-22<\/td>8.10%<\/td><\/tr>
2020-21<\/td>8.50%<\/td><\/tr><\/tbody><\/table><\/figure>\n

Tax on EPF<\/h2>\n