- Why in news
- On 2 March 2026, the 239th Central Board of Trustees (EPF) meeting, chaired by Labour Minister Mansukh Mandaviya, recommended an 8.25% EPF interest rate for FY 2025-26. It also approved new EPF, EPS and EDLI Schemes under the Code on Social Security, 2020.
- What it is
- The Central Board of Trustees (CBT), EPF is the tripartite apex body that administers the Employees' Provident Fund Organisation (EPFO). EPFO runs the EPF Scheme 1952, the Employees' Pension Scheme 1995 and the EDLI Scheme 1976 under the EPF & MP Act, 1952. The CBT recommends the yearly interest rate, which the Government of India must notify before EPFO credits it.
- Inoperative account
- An account is inoperative if no contribution comes for three continuous years after the member turns 55 or retires, whichever is later.
- Chair of CBT
- The Union Labour Minister chairs the CBT; the Central Provident Fund Commissioner is its Member Secretary.
Don’t confuse with EPF vs EPS vs EDLI: EPF is the provident fund savings scheme (1952). EPS is the pension scheme (1995). EDLI is the insurance scheme (1976).
Don’t confuse with CBT recommends vs Government notifies: The CBT only recommends the interest rate. It takes effect after the Government of India notifies it.
Schemes: 52 Prelims questions since 2013, 10 in Prelims 2026 alone. They test features, the period and who funds it. In Mains, 33 news-triggered questions, mostly GS3.
Why it matters
- Stable, above-8% returns strengthen retirement security of crores of workers.
- New schemes under the Social Security Code give a firm legal base for provident fund, pension and insurance.
Problems
- Returns depend on market-linked investments such as ETFs, adding risk to members' funds.
- Many inoperative accounts and litigation over exempted trusts show compliance and data gaps.
Way forward
- Extend auto-settlement to larger balances after the pilot, with Aadhaar and bank-account seeding.
- Strengthen investment oversight and risk-based online audit of exempted establishments.
Put in your answer
EPFO FY 2024-25 performance: Total contributions of ₹3,35,628.81 crore; 1,22,89,244 new members enrolled.
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
Prelims practice · Statements
Ours, not from a UPSC paper
Consider the following statements:
- 1.The Central Board of Trustees (EPF) recommends the yearly EPF interest rate, which the Government of India must notify before EPFO credits it to subscribers.
- 2.Under EPF provisions, an account is treated as inoperative if no contribution is received for five continuous years after the member attains 55 years of age or retires, whichever is later.
- 3.The Chairman of the Central Board of Trustees, EPF is the Central Provident Fund Commissioner.
Which of the statements given above is/are correct?
True or false?
1 of 6
Statements the way Prelims prints them. Say first, then see the fact.
1.The Central Board of Trustees recommends the EPF interest rate, which must then be notified by the Government of India before EPFO credits it.
True. CBT recommends; Government notifies; EPFO credits.
2.The CBT recommended an interest rate of 8.25% on EPF for FY 2025-26.
True. 8.25% was recommended for FY 2025-26.
3.Under EPF provisions, an account is treated as inoperative if no contribution is received for five continuous years after the member attains 55 years of age.
False. The period is three continuous years after age 55 or retirement, whichever is later.
4.The one-time Amnesty Scheme gives establishments a defined period of one year to come into compliance.
False. The defined period is six months.
5.The Employees' Pension Scheme was introduced in 1995 and the EDLI Scheme in 1976.
True. EPS is 1995; EDLI is 1976; EPF Scheme is 1952.
6.The Chairman of the Central Board of Trustees, EPF is the Central Provident Fund Commissioner.
False. The Union Labour Minister chairs the CBT; the CPF Commissioner is Member Secretary.
Written by us from the release, not by UPSC; checked by a second model.
Worth revising until Prelims 2027: most news questions come within two years of the event.