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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