Every salaried worker in India contributes to their EPF account month after month, trusting that the system will protect their savings and deliver when it matters. The 239th meeting of the Central Board of Trustees (CBT) for EPF, held on 2 March 2026, made several decisions that directly impact how well that trust is honoured.
From confirming the EPF interest rate for FY 2025-26 to launching a pilot for auto-settlement of inoperative accounts and signing a landmark social security agreement with the UK, the outcomes of this meeting carry real consequences for millions of workers. This article breaks down each decision, explains what it means for your account, and tells you what action you need to take.
The 239th meeting of the Central Board of Trustees was convened by Union Minister Dr. Mansukh Mandaviya in New Delhi on 2 March 2026. The CBT is the apex governing body for EPFO and includes representatives from employers, employees, and the government. Its decisions carry legal weight and directly shape how EPF funds are managed, invested, and disbursed.
The agenda covered five major areas: the interest rate recommendation for FY 2025-26, structural governance reforms, the auto-settlement pilot for inoperative accounts, alignment with the Social Security Code 2020, and the signing of the India-UK Double Contributions Convention.
| Decision | Impact | Effective From |
|---|---|---|
| EPF interest rate at 8.25% | Steady returns for 7+ crore subscribers | FY 2025-26 (pending notification) |
| Auto-settlement pilot for inoperative accounts (Rs 1,000 or less) | 1.33 lakh accounts worth Rs 5.68 crore credited automatically | Pilot phase from March 2026 |
| India-UK Double Contributions Convention | No dual social security costs for Indians in the UK | Upon ratification |
| Amnesty scheme for exempted establishments | Resolves compliance disputes for trust-managed PF | Rollout pending |
| New simplified SOP for EPF exemption | Faster, paperless processing | Rollout pending |
| Alignment with Social Security Code 2020 | Stronger legal governance for EPF, EPS, EDLI | Ongoing |
The Central Board of Trustees has recommended an EPF interest rate of 8.25% for the financial year 2025-26. This rate is consistent with the previous year and will be credited to members' accounts once officially notified by the Ministry of Finance.
In a declining interest rate environment globally, maintaining 8.25% reflects careful calibration of EPFO's investment portfolio against member obligations. It is a rate that most conventional savings instruments struggle to match, especially on a post-tax basis.
| Investment Option | Approx. Rate (2025-26) | Tax on Returns | Risk Level |
|---|---|---|---|
| EPF | 8.25% | Exempt (EEE) | Nil |
| PPF | 7.1% | Exempt (EEE) | Nil |
| Bank FD (5-year) | 6.5% to 7.0% | Fully taxable | Low |
| Sukanya Samriddhi | 8.2% | Exempt | Nil |
| NPS (Tier I, Equity) | Market-linked | Partial tax benefit | Moderate to High |
EPF's combination of competitive returns, government backing, and EEE tax status makes it one of the most efficient retirement instruments for salaried employees in India. Interest accrues monthly but is credited to accounts on 31 March of each financial year.
Interest is calculated on a monthly running balance basis throughout the year but credited annually. Once the Ministry of Finance issues the official notification, EPFO will credit 8.25% to all active subscriber accounts for FY 2025-26. You can track your balance through the EPFO member portal or the UMANG app.
Want to know if your account is in good standing before your next claim or job change?Check your PF withdrawability instantly on CheckMyPF.
One of the most member-friendly decisions from the 239th CBT meeting is the approval of a pilot scheme for auto-settlement of inoperative EPF accounts. For years, members with dormant accounts and small balances have been stuck in a claims process, often unable to withdraw small amounts because the effort outweighed the payout. This pilot changes that.
An inoperative EPF account is one where no contribution has been made for 36 consecutive months after the member reaches the age of 58, or one that has not been transferred or settled despite the member's employment ending. Inoperative accounts continue to earn interest up to the date of settlement.
The pilot covers inoperative accounts with a balance of Rs 1,000 or less. Approximately 1.33 lakh such accounts, holding a collective balance of Rs 5.68 crore, are eligible under this initial phase. EPFO has already expanded auto-settlement limits for active claims in a separate move. This pilot is distinct and specifically targets dormant, low-balance accounts.
If your account qualifies, EPFO will automatically initiate the settlement and credit the amount to your KYC-verified linked bank account, with no claim filing required on your part.
The individual amounts may be small, but the significance is large. This pilot is a test for a system that could eventually scale to all inoperative accounts regardless of balance. It reduces the administrative burden on EPFO, frees up unclaimed funds sitting idle, and returns money to workers who may not even know they have it.
If you have an old PF account you have lost track of and the balance exceeds Rs 1,000, do not wait. Recover it proactively. Talk to a FinRight PF expert for free.
Three institutional reforms were approved at the 239th CBT meeting, each targeting long-standing inefficiencies in how EPF is administered.
Certain large organisations operate their own PF trusts rather than contributing to the EPFO pool. These are called exempted establishments. Many have accumulated compliance disputes including interest shortfalls, benefit parity gaps, and reporting inconsistencies.
The approved amnesty scheme offers a one-time window to resolve these disputes without protracted litigation. This directly protects workers in these organisations whose entitlements may have been under-credited. If you work for a company with its own PF trust and have faced issues, speak to a FinRight expert.
Multiple overlapping standard operating procedures previously governed the EPF exemption process, causing delays and confusion for both employers and EPFO offices. The new consolidated SOP brings all processes into a single digital, transparent framework, reducing redundancy and accelerating both exemption applications and compliance checks.
The Social Security Code, 2020 consolidates 29 labour laws into four codes. The CBT approved new schemes under this Code, ensuring EPF, EPS (Employee Pension Scheme), and EDLI (Employees' Deposit Linked Insurance) operate under a consistent, updated legal structure. This strengthens members' rights and simplifies the regulatory landscape for employers.
The signing of the Double Contributions Convention (DCC) between India and the UK under CETA is a milestone for Indian professionals on cross-border assignments. It directly addresses a long-standing financial burden: the requirement to contribute to social security systems in both countries simultaneously.
Currently, an Indian professional temporarily working in the UK may be required to contribute to both India's EPF system and the UK's National Insurance system, regardless of which country will actually pay retirement benefits. EPFO has also introduced reforms for NRIs and cross-border workers separately, but the DCC is a bilateral treaty-level fix.
The DCC establishes clear rules on which country's social security system applies to cross-border workers. An Indian professional temporarily working in the UK will only contribute to one system, based on the nature and duration of their assignment. The result is lower social security costs, no double contributions, and more predictable compensation structures.
● Indian IT and services professionals on UK assignments
● Professionals seconded from Indian companies to UK subsidiaries
● Employees of UK companies working from India
● High-skilled professionals covered under CETA's mobility provisions
If you are an Indian professional working abroad and need clarity on your EPF entitlements and withdrawal rights, read our guide on how to withdraw EPF from abroad or speak to a FinRight expert.
EPFO's consolidated corpus exceeded Rs 28.34 lakh crore as of March 2025, making it one of the largest retirement fund pools in Asia. The board approved updated SOPs for managing corporate actions, ETF allocations, and mutual fund strategies to ensure this corpus is managed with market discipline and transparency.
The fund is diversified across government securities (G-Secs), PSU bonds, exchange-traded funds (ETFs), and other regulated instruments. This diversification is what allows EPFO to sustain a competitive interest rate while managing risk responsibly over the long term.
| If you... | What it means for you |
|---|---|
| Are a salaried employee contributing to EPF | 8.25% interest will be credited to your account for FY 2025-26 once notified |
| Have an old EPF account you stopped contributing to with Rs 1,000 or less | You may be auto-settled under the pilot, no claim filing needed |
| Work for a company with its own PF trust | Amnesty scheme may resolve past compliance issues affecting your balance |
| Work or plan to work in the UK | DCC eliminates dual social security contributions under CETA assignments |
| Are a PF member concerned about governance | Alignment with Social Security Code 2020 gives your entitlements stronger legal protection |
Not sure if your current EPF situation is clean and claim-ready? Use CheckMyPF to run a free eligibility check instantly.
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● EPFO's 239th Central Board of Trustees meeting was held on 2 March 2026, chaired by Union Minister Dr. Mansukh Mandaviya.
● EPF interest rate for FY 2025-26 recommended at 8.25%, pending official notification from the Ministry of Finance.
● Auto-settlement pilot launched for inoperative EPF accounts with a balance of Rs 1,000 or less. Around 1.33 lakh accounts worth Rs 5.68 crore are eligible.
● India and the UK signed a Double Contributions Convention (DCC) under CETA, eliminating dual social security contributions for Indian professionals working in the UK.
● Amnesty scheme approved for exempted establishments to resolve pending compliance disputes.
● Simplified, consolidated SOP for EPF exemption introduced for faster and paperless processing.
● New schemes aligned with the Social Security Code, 2020 for stronger legal backing of EPF, EPS, and EDLI.
● EPFO's consolidated corpus stands at over Rs 28.34 lakh crore as of March 2025.
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","_id":"69aadecaa47de857c48eef35"},{"question":"My EPF account has been inactive for years. Will EPFO auto-settle it?","answer":"The pilot scheme for auto-settlement of inoperative accounts currently applies only to accounts with a balance of Rs 1,000 or less. If your account qualifies, EPFO will automatically credit the balance to your KYC-verified bank account. For accounts with larger balances, a claim must still be filed. FinRight can help you trace and settle inactive accounts of any size.
","_id":"69aadecaa47de857c48eef36"},{"question":"What is the India-UK Double Contributions Convention and who does it apply to?","answer":"The DCC signed between India and the UK under CETA prevents Indian professionals on cross-border assignments from contributing to both countries' social security systems at the same time. It applies to employees covered under the trade agreement's mobility provisions, reducing total social security cost and simplifying payroll.
","_id":"69aadecaa47de857c48eef37"},{"question":"What is an exempted establishment and how does the amnesty scheme help?","answer":"An exempted establishment is a company that manages its own provident fund trust instead of contributing to the EPFO central pool. The amnesty scheme offers a one-time opportunity to resolve outstanding compliance disputes, protecting the retirement entitlements of employees in such organisations.
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