The central government clarifies that there has been no formal proposal or demand from labour unions to increase the employees’ provident fund (EPF) interest rate to 10 per cent. There has been a huge appetite in salaried employees for higher returns on pensions at recent times.
As Shobha Karandlaje wrote in response to a Lok Sabha paper on 3 March 2026 that the government had not received any official representation from the unions seeking a hike in the interest rates offered in the EPF to double digits.
It was a matter raised by Member of Parliament Vijayakumar alias Vijay Vasanth, who asked whether there is any push by labour organisations on a possible increase. When asked to respond, the minister totally refused it.
How EPF Interest Rate is Determined?
Karandlaje also explained that the EPF interest rate is not predetermined but is based on the actual income generated from the provident fund corpus. Since the EPF interest rate is based on the actual income earned by the Provident Fund corpus, it cannot be compared with any other variable.
The interest rate is recommended by the Central Board of Trustees under the Employees’ Provident Fund Organisation. CBT is a tripartite body including the government, employers, and employees, so that everyone makes a fair decision.
At present, the EPF interest rate is at 8.25 percent, and it has stayed unchanged since the year 2022–23. In any case, there will need to be a revision to this rate, depending on the earnings of the EPF corpus.
EPFO Introduces ‘Passbook Lite’ Functionality.
With the goal of improving transparency and user convenience, the Employees’ Provident Fund Organisation launched a new Passbook Lite feature on its portal. This service can be used to quickly receive information about all the activity for a customer's account, from new contributions, withdrawals, and current balance.
To use the feature, members need to log in using their UAN account number, go through the "View" screen to view details, and select “Passbook Lite.” The next five contributions are displayed there, whilst detailed passbooks can be viewed through Member ID.
Interest Credit Assurance
The EPFO has also reassured subscribers that delays in interest crediting do not cause financial loss. By changing the policy in November 2024, interest will be calculated at any point and credited at the settlement of pay claims in any month, instead of at the end of the previous month.
This is intended to protect subscribers’ earnings and to improve overall transparency in EPF account management.
The government's clarification is also a hope for lowering speculation on interest rate hikes, and new digital tools should be part of ongoing efforts to extend user experience for millions of EPF subscribers throughout the country in the future.
