EPF interest: The Employees Provident Fund (EPF) interest for FY26 is set to be credited this month by 15 July, calculated at the rate of 8.25% per annum. Notably, the interest rate per month works out to around 0.688% per month, according to a report by Clear Tax.
Ahead of this, we take a look at how to calculate your monthly EPF earnings at the 8.25% p.a. and also provide a stepwise guide for you to check your closing balance online via the e-passbook facility on the EPFO website.
EPF interest: How is the interest earned calculated?
The EPF interest rate is applicable for all contributions made during a financial year (FY26 in this instance) and is calculated monthly based on the closing balance for that month. Notably, interest earned on EPF contributions is usually tax-exempt — up to ₹1.5 lakh under Section 80C of the old tax regime.
However, if you choose to contribute towards voluntary provident fund (VPF), and if your total annual contribution (Employee’s 12% + VPF) exceeds ₹2.5 lakh, interest earned on the excess amount (above ₹2.5 lakh threshold) is subject to income-tax at your slab rate.
According to the Clear Tax report, your employer’s 12% contribution towards provident fund is divided 3.67% towards EPF and 8.33% towards EPS (pension), the latter of which does not provide interest. Thus, for a month, EPF interest can only be calculated on a portion of the contribution, as follows:
For basic salary and DA of ₹50,000 per month:
- Employee contribution to EPF (12% of ₹15,000 cap): ₹1,800/month.
- Employer contribution to EPF (3.67% of ₹15,000 cap): ₹550/month.
- Employer contribution to EPS (8.33% of ₹15,000 cap): ₹1,250/month.
- Total monthly EPF contribution: ₹1,800 + 550): ₹3,150/month
- Interest earned on EPF: ₹25 (at 0.688% per month)
Here’s how to check EPF interest credit, passbook
To check your EPF interest credit details, log into the official EPFO portal and navigate to your EPF passbook. Once interest if deposited, the last credit will show as ‘interest updated up to 15/07/2026’.
- Visit the EPFO India website and login.
- In the top navigation bar, click the “View” tab.
- From the dropdown, select “Passbook“.
- Log in to the passbook portal using your UAN and the same password.
- Your Member IDs appear as a list (of different companies). Click “View Passbook” next to the relevant Member ID to view the full transaction history.
- To save a copy, click the “Download PDF” button at the top right of the passbook page.
Notably, members also have the facility to view and download their PF passbook via the Umang app.
EPF interest payment to be credited by 15 July — Details
Union Labour Minister Mansukh Mandaviya on 8 July said the EPFO is processing interest payment on provident funds of 34 crore members for FY26. You can check your balance for the same by next week, on 15 July (Wednesday). The total interest is estimated to exceed ₹1.4 lakh crore.
The interest will be auto-processed and then verified by field authorities before being credited to the member account balances and will reflect in your passbook by 15 July, he added.
Speaking to reporters, the minister said that online access of PF accounts has been enabled with the implementation of 2.01 CITES (centralised IT-enabled services), a project designed to enhance convenience, operational efficiency, and transparency.
- The updated system allows EPF members to avail services at any authorised location across the country, similar to banking services where customers do not have to visit a particular bank branch.
- Members will have access to a unified digital interface to view their details, PF balances, claim status, pensionable service records, and benefits availed, thereby ensuring transparency and access to information about their PF accounts and the submission of claims.
- Claim payments will be processed through the centralised architecture and routed through faster e-payment channels.
- Timely credit of settlement amounts to be made directly into members’ bank accounts.
EPF v/s Conventional Low-Risk Investment Options
As already mentioned, EPF is one of the most attractive low-risk investment options. It offers a competitive interest rate of 8.25%, which is significantly higher than conventional low-risk investment options like FDs, RDs, and even some debt instruments. The following table compares the return on investments, EPF v/s other options.
| Investment Option | Annual Return Rate |
| PF | 8.25% |
| Fixed Deposits | Generally 2%-7.5% (better rates for senior citizens available) |
| Savings Deposits | Up to 4% |
| Government Securities (G-Secs) | Generally up to 7% |
Taxation on EPF Interest
- Interest received on the employee’s contribution to the EPF account above Rs. 2.5 lakh in a financial year is taxable in the hands of the employee. The interest is also subject to TDS.
- However, the interest accumulated on EPF contributions within Rs. 2.5 lakh is tax-free.
- Employees can also claim tax deductions on EPF contributions up to Rs. 1.5 lakh under Section 80C of the Income Tax Act, 1961.
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