Is there a demand to increase the EPF interest rate to 10%? Labour Ministry replies

The Employees Provident Fund Organisation (EPFO) has not received any representation from labour unions demanding an increase in the EPF interest rate to up to 10%, according to the Union Ministry of Labour and Employment.

In a written reply to a query in the Lok Sabha on March 30, 2026, Union Minister of State for Labour and Employment, Shobha Karandlaje, said, "No representations have been received from labour unions by EPFO specifically seeking enhancement of the EPF interest rate up to ten per cent."

She was replying to a query on "whether the Government has received formal representations from labour unions seeking enhancement of Employees' Provident Fund (EPF) interest rate up to ten per cent and if so, the number of representations and response thereof."

The minister said that the EPF interest rate declared by EPFO is based on the actual income earned by the Provident Fund corpus from its investments.

"As per Paragraph 60(4) of the EPF Scheme, 1952, the Central Government is required to ensure that there is no overdrawal on the Interest Account," she said.

"Since the EPF interest rate is based on the actual income earned by the Provident Fund corpus, it is not comparable with any other variable," she added.

The minister further said that rate of interest on EPF is recommended by the CBT, which is a tripartite body comprising representatives of the Government, Employers, and Employees.

Replying to another query related to demand for calculating EPS pension based on actual basic salary, the minister said, "The EPS 1995 is a “Defined Contribution-Defined Benefit” Social Security Scheme. The corpus of the Employees’ Pension Fund is made up of (i) contribution by the employer @ 8.33 per cent of pay and (ii) contribution from Central Government through budgetary support @ 1.16 per cent of pay up to an amount of ₹15,000/- per month. As defined in EPS-95 "Pay" means basic wages, with dearness allowance, retaining allowance and cash value of food concessions admissible."