The Employees' Provident Fund Organisation has begun depositing 8.25% interest for FY26 into nearly 80 million accounts. Meanwhile, UAN activation services have shifted exclusively to the UMANG app, requiring Aadhaar-based face authentication. Investors and employees should note these updates for smoother account management.
The Employees' Provident Fund Organisation (EPFO) has started crediting an 8.25% interest rate for the 2025-26 financial year to its roughly 80 million subscribers. This interest rate matches the level provided in the previous two years, maintaining a stable return for the retirement savings of formal sector workers in India.
Faster Processing Through Tech Upgrades
Subscribers can expect the interest credit process to move more quickly this year compared to historical timelines. The organization recently finished a major technology overhaul, which involved consolidating databases and improving internal software systems. These enhancements are designed to remove processing bottlenecks, which historically caused delays in getting interest reflected in individual accounts.
New Requirements for UAN Management
As part of an initiative to improve digital security, the EPFO has changed how members access key account services. The process for activating or generating a Universal Account Number (UAN) has been moved away from the main EPFO member portal. These tasks are now only available through the UMANG mobile application. A key requirement for this shift is the mandatory use of Aadhaar-based Face Authentication. This is meant to ensure that only the verified account holder can perform these sensitive administrative actions, reducing the risk of unauthorized account access.
Clarity on Voluntary Contributions
Under the newly introduced EPF Scheme for 2026, there is now clear guidance on how employers handle voluntary provident fund contributions. Employees often choose to contribute more to their provident fund than the legally required amount. The new rules clarify that employers are not legally bound to match these additional, voluntary contributions. While employees remain free to contribute more toward their own savings, an employer's matching contribution is now explicitly tied to individual company policies and specific employment contracts rather than a government-mandated requirement. This change aims to resolve past confusion for both payroll departments and employees regarding how much employers are required to contribute beyond the basic statutory wage limit.