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PF Interest Rate 2025-26 - Current Rate and Calculation

Apr 12, 2026 1 min read

Current EPF Interest Rate

The EPFO announces PF interest rates annually. For the financial year 2025-26, the interest rate is announced by the central government based on EPFO investment returns.

How PF Interest is Calculated

PF interest is calculated on the running balance of your PF account. Interest is credited annually at the end of the financial year (March 31).

Formula: Monthly Interest = (Monthly PF Balance x Annual Interest Rate) divided by 12

Tax on PF Interest

Interest earned on PF is tax-free if you have completed 5 years of continuous service and employee contribution is within 2.5 lakh per year limit.

Interest on contributions above 2.5 lakh per year (by employee) is taxable from FY 2021-22.

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