Members of the Employees’ Provident Fund Organization (EPFO) are expected to see interest added to their provident fund passbooks by July 15, with the pension fund body starting to process interest for FY26 under its newly launched central digital system.
Annual interest at the approved rate of 8.25 per cent is being processed for around 34 crore members’ accounts, Labor Minister Mansukh Mandaviya said on Wednesday. Total payments are estimated at more than $Rs 1.44 lakh crore, news agency PTI reported.
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“Annual interest for FY2026 @ 8.25 per cent on Rs 34 lakh crore from member accounts, estimated at over $The Rs 1.44 lakh crore will be automatically processed and then verified by field authorities before being added to members’ account balances. The minister said members will be able to view the interest balance in their current passbook by July 15.
The government had approved the interest rate at 8.25 percent for FY26 last month.
The new CITES platform changes how EPFO works
The minister said online access was made possible with the launch of CITES 2.01 (Centralized Information Technology Enabled Services), a system developed to improve efficiency, transparency and accessibility for EPFO members.
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He explained that the organization has moved away from its previous decentralized system, where each field office maintains a separate database. With the migration to one central database, member records are now available across the country through a unified digital platform.
According to Mandaviya, earlier interest payments were processed only in October or November after government approval. The new system is expected to significantly reduce this timeline.
Members can access PF services from anywhere
With a centralized structure, EPFO members will not be tied to a specific office for most services.
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They will be able to access their PF balance, claim status, pensionable service records and details of benefits availed through a unified digital interface, irrespective of their location.
The new system also allows claims settlements to be processed centrally and routed through faster electronic payment channels, enabling settlement amounts to be deposited directly into members’ bank accounts in a secure and timely manner.
Interest on final settlements and revised withdrawals is also paid
The upgraded system also changes the method of calculating interest for final PF settlements. Instead of only accruing interest until the last day of the previous month, interest will now be accrued until the effective date of the payment authorization.
The EPFO has also simplified the partial withdrawal rules by reducing the current 13 categories to three broad heads:
- Basic needs, including illness, education and marriage
- Housing needs
- Special circumstances
Members will also be able to withdraw up to 75 per cent of their total funding balance under the revised framework.
Automatic PF transfers and nationwide pension payments
Another major change concerns job switching. Members with PF accounts based on Universal Account Number (UAN) linked to Aadhaar will not have to apply separately to transfer their provident fund accumulations. These transfers will now be initiated and settled automatically.
The central system of pension payment has also been expanded. Pension claims processed at any regional office can now be deposited through any bank account across the country, replacing the previous system under which pension payments were linked to a specific bank branch mentioned in the Pension Payment Order (PPO).
(with PTI inputs)
