Revolutionizing social security – Employees provident fund organisation (“EPFO”) unveils 8.25% interest, digital claims, and landmark 2026 reforms

[1]The 239th meeting of the Central Board of Trustees (“CBT”) held on March 2, 2026, introduced several financial and operational reforms to align the EPFO with the Code on Social Security, 2020. Key highlights include the recommendation of a stable 8.25% interest rate for EPF accumulations for FY 2025-26 and the approval of a pilot project for the auto-settlement of claims. This project targets inoperative accounts with balances of INR 1,000 or less, directly crediting funds to (Aadhaar Redacted)-seeded bank accounts for approximately 1.33 lakh members without requiring new documentation.

To streamline administration, the Board approved the new EPF, EPS, and EDLI Schemes of 2026, which provide a robust legal foundation to replace existing frameworks. A unified, technology-driven Standard Operating Procedure (“SOP”) will replace the current Exemption Manual and four older SOPs, introducing risk-based online audits and an end-to-end digital process for fund transfers. Additionally, a one-time, six-month Amnesty Scheme was launched for exempted establishments to resolve litigation and compliance issues, waiving penalties for employers who have provided statutory-equivalent benefits.

The meeting also addressed international relations and investment governance. The CBT noted a reciprocal Double Contributions Convention (“DCC”) with the UK, signed in July 2025 to reduce costs for workers and employers. On the investment front, new SOPs were approved for managing corporate actions and Equity ETFs to safeguard a consolidated corpus that exceeded INR 28.34 lakh crore by March 2025. Finally, the Institute of Banking Personnel Selection (“IBPS”) was appointed as the official agency for recruitment and promotions to ensure transparency and faster filling of vacancies within the EPFO.

[1] under release ID: 2234502