The Employees' Provident Fund Organisation (EPFO) will credit more than Rs 1.44 lakh crore as annual interest at the rate of 8.25 per cent to around 34 crore member accounts by July 15, following the rollout of a new centralised digital processing system.
The announcement comes after the implementation of the Ministry of Labour and Employment's Centralised IT Enabled Services (CITES) project, an initiative aimed at modernising EPFO's service delivery through automation and rule-based processing.
According to the ministry, annual interest for FY 2025-26 at 8.25 per cent, amounting to over Rs 1.44 lakh crore, will first be auto-processed through the new system and then verified by field authorities before being credited to members' provident fund accounts.
"Annual interest for FY 25-26 at 8.25 per cent to 34 crore member accounts estimated at over Rs 1.44 lakh crore, will be auto-processed and then verified by field authorities before crediting to member account balances. Members will be able to view the interest credit in their passbook by July 15," the ministry said.
The new system significantly shortens the timeline for interest credit. Earlier, EPFO subscribers typically had to wait until October or November for the annual interest to reflect in their accounts.
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EPFO has also completed the migration of its entire database of member records to a centralised platform. Previously, services were linked to individual regional offices, requiring members to approach the office where their PF account was maintained. Under the new system, service requests can now be processed from any authorised EPFO office across the country.
The ministry said the upgraded framework provides members with a unified digital interface to access membership details, provident fund balances, claim status, pensionable service records and benefits availed, improving transparency and ease of access.
Another key reform under the EPFO 2.0 initiative relates to claim settlements. Claims of up to Rs 5 lakh that are fully KYC-compliant and validated will now be processed through an auto-settlement mechanism. Earlier, the auto-settlement facility was available only for advance claims of up to Rs 1 lakh.
Officials also highlighted a major change in the calculation of interest on final provident fund settlements. Under the revised system, interest will now be calculated up to the date of payment authorisation, instead of only up to the last day of the previous month, ensuring members receive additional interest for the intervening period.
The ministry added that the centralised IT platform has also improved grievance redressal by allowing members to seek assistance, submit requests and obtain clarifications from any EPFO office in the country, rather than being restricted to the regional office where their account is registered.
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