EPFO Meeting on March 2, PF Interest Rate Hike Likely Before Holi?

EPFO: The Employees’ Provident Fund Organisation (EPFO) is holding an important meeting on March 2 to finalize the interest rate on Employees’ Provident Fund (EPF) deposits for the financial year 2025-2026 (FY26). The Central Board of Trustees (CBT), the EPFO’s highest decision-making body, comprising government nominees, employer representatives, and trade union members, sets the rate based on the returns generated by EPFO investments.

It is expected that the EPFO may maintain the interest rate at 8.25% for the third consecutive year. Political considerations are also at play. Assembly elections are approaching in states like West Bengal, Tamil Nadu, Assam, Kerala, and the Union Territory of Puducherry, so the government may prioritize avoiding any cuts that could impact the sentiment of salaried employees.

EPFO manages a fund of Rs 26 lakh crore

According to reports, the EPFO manages a massive fund of Rs 25-26 lakh crore. The EPF remains a crucial component of retirement planning, offering tax-free, guaranteed returns that often exceed those of bank fixed deposits and small savings schemes. The EPFO’s last meeting was held in October, and several decisions were taken, including simplifying EPF partial withdrawal rules. The Ministry of Labor and Employment stated that to make life easier for EPF members, the CBT has decided to simplify the EPF scheme’s partial withdrawal rules.

Simplifying the rules

To achieve this, 13 complex rules have been combined into a single, simplified rule. These rules have been divided into three categories: essential needs (illness, education, marriage), household needs, and special circumstances. Withdrawal limits have also been eased. The ministry stated that up to 10 partial withdrawals are permitted for education and five for marriage (currently, there is a limit of three partial withdrawals for marriage and education). The ministry also stated that the minimum service requirement for all partial withdrawals has been reduced to a uniform 12 months.

Meanwhile The government is preparing to take a major step toward strengthening the social security of salaried employees. Raising the salary limit for mandatory PF contributions under the Employees’ Provident Fund Organization (EPFO) is being seriously considered. A proposal to increase the current limit of ₹15,000 per month has been put forward, which could bring millions of additional employees into the ambit of retirement benefits like PF and pension. Let’s explain the full details.

The government is considering increasing the limit for mandatory contributions under the Employees’ Provident Fund Organization (EPFO). Currently, this limit is Rs 15,000 per month, but could be raised to Rs 25,000 per month. The aim is to bring more workers under the social security net. This proposal is under consideration at the highest level of the government and is expected to be presented at the EPFO’s Central Board of Trustees meeting next month. If approved, the changes could come into effect from April 1.