EPFO-Linked Employment Scheme to Benefit 60 Lakh Workers as Centre Approves 8.25% PF Interest
Nearly 60 lakh first-time employees, including more than 18 lakh women, have been brought under the benefits of the Pradhan Mantri Viksit Bharat Rozgar Yojana, a major employment-linked initiative aimed at encouraging formal job creation and strengthening social security coverage.
The scheme is being implemented through the Employees’ Provident Fund Organisation. Its benefits will remain available until 31 July 2027. The initiative is designed to support newly employed workers entering the formal workforce for the first time, while also encouraging employers to generate fresh employment opportunities.
According to the available information, the scheme has already covered around 60 lakh employees. A significant feature of this coverage is the participation of women workers, with more than 18 lakh women among the beneficiaries. This indicates the growing participation of women in formal employment and reflects the government’s focus on expanding organised-sector job opportunities.
The role of EPFO is central to the implementation of the scheme, as it provides a formal platform through which employees are registered and brought under social security coverage. By linking new employment with EPFO registration, the scheme is expected to help more workers access provident fund benefits and other protections available under the formal employment system.
Alongside this employment-linked development, the Central Government has approved an 8.25 per cent interest rate on Employees’ Provident Fund deposits for the financial year 2025–26. The decision is expected to benefit more than seven crore EPFO subscribers across the country.
The recommendation for the interest rate was made by EPFO’s Central Board of Trustees, which includes representatives of the government, employers and employees. After approval from the Central Board of Trustees, the proposal was sent to the Ministry of Finance. Once the Finance Ministry gives the required clearance, the Ministry of Labour and Employment notifies the rate and the interest amount is credited to members’ provident fund accounts.
Officials indicate that the interest amount may be credited to subscribers’ accounts within the same month after completion of the formal process. EPFO has also introduced a new digital system to make the process of depositing interest faster and more convenient. With this digital mechanism, interest is expected to be credited more quickly than in previous years.
The 8.25 per cent interest rate continues the rate that was applied for the financial year 2024–25. EPFO had raised the interest rate from 8.15 per cent in 2022–23 to 8.25 per cent for 2023–24. Before that, the interest rate had been reduced to 8.10 per cent for 2021–22, which was the lowest rate in more than four decades. The 8.10 per cent rate for 2020–21 was also considered among the lowest since 1977–78, when the rate stood at 8 per cent.
For private-sector employees, the provident fund remains one of the most important compulsory savings and retirement security mechanisms. Under the system, employees contribute 12 per cent of their basic wages to the provident fund, and employers also make an equal contribution. The accumulated amount, along with interest, helps employees build long-term financial security.
The approval of the 8.25 per cent PF interest rate is therefore significant for crores of working people, especially those dependent on provident fund savings for retirement planning and future financial needs. At the same time, the Pradhan Mantri Viksit Bharat Rozgar Yojana is expected to strengthen the formal employment ecosystem by encouraging more first-time workers to enter organised employment.
Together, the employment scheme and the PF interest decision highlight the government’s dual focus on job creation and social security. While the Rozgar Yojana aims to bring new workers into the formal sector, the provident fund interest decision provides financial benefit to existing EPFO subscribers. Both measures are expected to support workers, promote formalisation of employment and strengthen the country’s labour welfare framework.
