EPF Scheme 2026 keeps PF interest rate at 8.25%: Here's what changed
The EPF Scheme, 2026 is now in force. Here's what it changes for PF subscribers and what continues
 "EPF Scheme 2026 keeps PF interest rate at 8.25%: Here's what changed")
The government has notified the Employees’ Provident Funds (EPF) Scheme, 2026 under the Code on Social Security, 2020, replacing the long-standing EPF Scheme, 1952. While the move marks a major legal overhaul of India’s provident fund framework, it does not alter the key features that matter most to employees.
The annual EPF interest rate remains at 8.25 per cent for FY2025-26, existing account balances remain protected, and the current contribution structure continues unchanged. Instead, the new framework primarily modernises the legal structure, formally recognises digital services already offered by the Employees' Provident Fund Organisation (EPFO), and introduces a few governance-related changes.
EPF interest rate remains unchanged
One of the biggest concerns among EPF subscribers after the notification of the new scheme was whether the annual interest rate would change.
The answer is no.
The Ministry of Labour and Employment has already approved an 8.25 per cent interest rate for FY2025-26, which will continue to be credited to EPF accounts. The notification of the EPF Scheme, 2026 does not alter the rate of return on provident fund deposits.
For salaried employees, this means there is no immediate impact on the growth of their retirement savings.
Existing PF accounts and benefits continue
The new scheme also does not require existing members to open fresh accounts or transfer their balances.
All accumulated provident fund balances, service history and retirement benefits continue without interruption under the new legal framework.
In effect, the law governing EPF has changed, but members' rights and accumulated savings remain protected.
What has actually changed?
The biggest shift is legal rather than financial.
Until now, the EPF operated under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. It will now function under the Code on Social Security, 2020 through the newly notified EPF Scheme, 2026.
The objective is to align provident fund rules with the broader social security framework introduced by the government.
Digital services now become part of the rules
Many online services that EPFO members already use have now been formally incorporated into the scheme.
These include:
- Online filing of returns
- Electronic maintenance of records
- Digital member accounts
- Online claim submission
- Electronic annual statements
- Digital inspections
Most of these services have already been available to members for several years. The new scheme mainly gives them formal legal recognition.
New limit for exempted PF trusts
One notable operational change affects exempted or private provident fund trusts run by certain employers.
Under the new rules, these trusts cannot declare an annual interest rate that is more than 200 basis points (2 percentage points) higher than the EPF interest rate declared by the Central government.
The provision is intended to bring greater consistency in returns offered by exempted trusts while allowing them some flexibility based on their investment performance.
Interest will continue to be credited on members' monthly running balances, in line with the scheme's provisions.
Government gets emergency powers
The EPF Scheme, 2026 also gives the Central government the power to temporarily reduce or defer EPF contributions during exceptional circumstances such as pandemics, epidemics or national disasters.
However, this flexibility is subject to conditions.
Any such relaxation can be introduced only for a limited period of up to three months and is designed to address extraordinary situations rather than permanently change contribution rules.
What remains unchanged?
For the vast majority of salaried employees, the following continue exactly as before:
- EPF interest rate remains 8.25 per cent for FY2025-26.
- Existing EPF accounts and accumulated balances remain valid.
- The standard employee and employer contribution structure remains unchanged.
- Retirement, withdrawal and other member benefits continue under the new framework.
What should EPF subscribers do?
For most subscribers, no immediate action is required.
Employees do not need to migrate their accounts, submit fresh applications or change their contribution pattern because of the new scheme. Contributions will continue as before, and EPF accounts will remain operational without disruption.
The EPF Scheme, 2026 is therefore better viewed as a legal and administrative update than a financial one. While it modernises the regulatory framework and formally embeds digital processes, it leaves the core features that determine employees' retirement savings largely untouched. For millions of EPFO members, the transition is expected to be seamless, with the familiar 8.25 per cent return and existing benefits continuing under a new statutory framework.