EPFO May Cut EPF Interest Rate for FY26: What to Expect

• EPFO is considering a slight reduction in the EPF interest rate for FY2025-26, potentially by 5-25 basis points from the current 8.25%.
• The proposed cut aims to preserve the EPFO corpus amid increasing contributors and higher payouts.
• The Finance, Investment & Audit Committee will recommend a rate in late February, with final approval by the Central Board of Trustees (CBT) in early March.
• Political considerations, including upcoming state elections, might influence EPFO to retain the current 8.25% rate despite internal recommendations for a cut.
• EPFO may also discuss raising the PF wage ceiling from Rs 15,000 to Rs 25,000, which could expand coverage and increase fund inflows.