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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.

EPF Rate Hike: This week is very special for about 7 crore account holders of the Employee Provident Fund Organization, which runs the social security scheme. A meeting of the Central Board of Trustees of EPFO ​​​​may be held on 28 February 2025 i.e. Friday this week, 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 received by EPFO ​​on its investment in the current financial year, EPFO ​​account holders can be given 8.25 percent interest this year as well.

EPFO's scheme is considered to be the largest social security scheme for those employed in the private sector. Every month a fixed part 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 the Central Board of Trustees meeting may discuss the creation of an Interest Stabilization Reserve Fund to give EPFO ​​account holders a return on their investment. The purpose of creating this fund is to provide stable returns to 7 crore EPFO ​​account holders on their provident fund. This will enable account holders to get a fixed return even during 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. Apart from the Minister of Labor and Employment, the Central Board of Trustees includes representatives of trade unions.