EPFO News Update: A meeting of the Central Board of Trustees will be held under the chairmanship of Mansukh Mandaviya. And in this meeting, a decision will be taken regarding the interest rate on EPF for the current financial year.
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EPF Rate Hike: This week is very special for about 7 crore account holders of Employee Provident Fund Organization, which runs the social security scheme. On 28 February 2025, i.e. Friday this week, a meeting of the Central Board of Trustees of EPFO may be held in which a decision can be taken regarding the interest rates of Employee Provident Fund i.e. EPF for the financial year 2024-25. In the financial year 2023-24 also 8.25 percent interest was given on EPF.
A meeting of the Central Board of Trustees will be held under the chairmanship of Labor and Employment Minister Mansukh Mandaviya. And in this meeting, a decision will be taken regarding the interest rate on EPF for the current financial year. After getting approval from the CBT, the proposal will be sent to the Finance Ministry for approval. For the financial year 2023-24, EPF account holders were given interest at the rate of 8.25 percent, 8.15 percent in 2022-23 and 8.10 percent in 2021-22. It is expected that due to the excellent return EPFO received on its investment in the current financial year, EPFO account holders can be given 8.25 percent interest this year as well.
Also Read- PPF Investment: Alert issued for those investing in Public Provident Fund.
EPFO’s scheme is considered to be the biggest social security scheme for those employed in the private sector. Every month a fixed portion is deducted from the salary of private sector employees in the name of PF and the employer contributes to the PF. Employees can withdraw PF money in case of job loss, building or buying a house, marriage, children’s education or retirement.
There is also a possibility that in the meeting of the Central Board of Trustees, there may be a discussion on the creation of Interest Stabilization Reserve Fund to give returns on their investment to the EPFO account holders. The purpose of creating this fund is to provide stable returns to 7 crore EPFO account holders on their provident fund. This will provide fixed returns to the account holders even in the period of fluctuating interest rates or EPFO getting low returns on its investment. If the scheme gets approval from the Central Board of Trustees of EPFO, then it can be implemented from 2026-27. The Central Board of Trustees includes the Minister of Labour and Employment as well as representatives of trade unions.
