The Central Board of Trustees (CBT) of the EPFO, the retirement fund body, met on Monday. Several decisions were made, including the interest rate on PF deposits. This included an amnesty scheme for trusts. Learn the full details.
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EPFO Update: The retirement fund body EPFO has fixed the interest rate on Provident Fund (EPF) deposits at 8.25 percent for the financial year 2025-26. It also announced several new social security schemes, including auto-settlement for withdrawals from inactive accounts. The ministry stated that the recommendation was made at a meeting of the Central Board of Trustees (CBT) chaired by Union Labor and Employment Minister Mansukh Mandaviya on Monday. The CBT is the highest decision-making board of the EPFO. According to the ministry, despite global challenges, the EPFO has maintained its financial position strong and ensured stable and better returns to account holders.
What is the special scheme?
The board also approved a one-time amnesty scheme for trusts covered under the Income Tax Act that have not yet been covered under the EPF Act. This scheme will be valid for six months. The aim is to bring companies and trusts into compliance with regulations and protect the interests of employees. Penalties and interest will be waived for trusts that already provide benefits equal to or better than the legal requirements.
Which schemes were approved?
The meeting also approved new social security schemes under the Social Security Code 2020. This aims to facilitate a smooth transition from the old rules to the new ones. The new EPF scheme, EPS 2026, and EDLI Scheme 2026, will replace existing schemes. This will provide a strong legal basis for providing PF, pension, and insurance benefits.
What happened to closed accounts?
The Board approved a pilot project to settle accounts that have been inoperative for a long time. Under this, accounts with unclaimed balances of ₹1,000 or less will be automatically settled (auto-initiated). Following its success, this feature will be extended to accounts with balances exceeding ₹1,000.
What are the plans for investments?
The Board also approved a new Standard Operating Procedure (SOP) to monitor investments and enhance transparency.
