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EPF Rate Hike: This week is very special for about 7 crore account holders of Employees Provident Fund Organization, which runs a social security scheme. The Central Board of Trustees of EPFO can be held on 28 February 2025 i.e. on Friday, in which the decision can be taken for the FY 2024-25 for the FY 2024-25 for the interest rates of Employment Provident Fund i.e. EPF. In FY 2023-24, 8.25 percent interest was given on EPF.
The Central Board of Trustees will meet under the chairmanship of Labor and Employment Minister Mansukh Mandavia. And in this meeting, a decision will be taken regarding the interest rate on EPF for the current financial year. After taking approval from CBT, the proposal for approval will be sent to the Finance Ministry. EPF account holders for FY 2023-24 were given 8.25 per cent, 8.15 per cent in 2022-23 and 8.10 per cent in 2021-22. It is expected that in the current financial year, EPFO can be given 8.25 percent interest this year to EPFO account holders due to excellent returns on their investment.
The EPFO scheme is considered to be the biggest social security scheme for those working in private sector. Every month a fixed part is cut in the name of PF from the salary of private sector employees and the employer contributes to PF. Employees can withdraw PF money in the event of missing jobs, building or buying, marriage, children’s education or retirement.
It is also expected that in the meeting of the Central Board of Trustees, EPFO account holders should be discussed on the creation of Interest Stabilization Reserve Fund to give returns on their investment. The objective of making this fund was given to 7 crore EPFO account holders on their Provident Fund. With this, despite the fluctuations in interest rates or the EPFO can be given fixed returns to the account holders despite getting low returns on their investment. If the scheme is approved by the Central Board of Trustees of EPFO, it can be implemented from 2026-27. The Central Board of Trustees consists of representatives of trade unions besides the Minister of Labor and Employment.
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