The central government is making several decisions to provide relief to the middle class. After the budget, the government is now preparing to take another major step for employed people. There is much discussion about increasing the interest rate on the Provident Fund (PF), which will directly benefit crores of employees. If this happens, it could provide significant relief to the middle class.

The Provident Fund (PF) is an important savings tool for employed people, with the government offering interest on these savings. Now, the government is considering increasing the interest rate on PF, which would boost the savings of middle-class individuals.

Possible Decision on Increasing Interest Rates in EPFO Board Meeting

Since all decisions related to the Provident Fund (PF) are made by the Employees Provident Fund Organization (EPFO), all eyes are now on the upcoming EPFO board meeting, where a possible decision to increase the interest rates could be taken. This meeting is scheduled for February 28. With the government’s focus on strengthening the economy, the 2025 Budget announced that income up to ₹12 lakh will be tax-free.

Current Interest Rate on PF

The discussion around increasing the interest in PF is not new. The government has been raising the interest rate for the past two years. In 2022-23, the interest rate on PF was revised to 8.15%. The following year, 2023-24, saw another revision to 8.25%, and currently, the interest rate remains at 8.25%.

Will the Interest Rate on PF Increase?

Although the government has not made an official announcement yet, there is a lot of speculation about the possibility of an interest rate hike. According to reports, the central government may increase the PF interest rate by 0.10%. If this happens, it will provide a direct financial benefit to employed people.

Over 7 Crore EPFO Members to Benefit

More than 7 crore people are benefiting from the PF under EPFO, and this number is growing steadily. Recently, the government made several reforms (EPFO Reforms) that will provide additional benefits to members.

New Facility for 68 Lakh Pensioners

The government has introduced the Centralized Pension Payment System (CPPS), which will directly benefit 68 lakh pensioners. This system allows pensioners to withdraw their pension from any bank, eliminating the need to change banks. It also makes starting the pension process more convenient, especially for those who live in their hometowns after retirement.

Simplified PF Account Transfer Process

Members can now transfer their EPF accounts from one company to another with just one OTP. This change will provide significant relief to employees who frequently change jobs.