EPFO Update: If you work in a private company and your PF (Provident Fund) is being deducted, then don’t worry. The EPFO (Employees’ Provident Fund Organisation) is expected to announce the interest rates on PF for the financial years 2025 and 2026 soon. This time, PF employees are likely to face a major setback, which is being widely discussed.
The government may announce a reduction in interest rates, which would be a significant blow. Initial indications suggest that a slight reduction in interest rates is highly probable. It is expected that an 8 per cent interest rate may be approved for PF employees. However, no official announcement has been made regarding the interest rate yet. The central government has been providing interest payments to PF employees every year.
How much interest can be expected this time?
The EPFO may soon open its coffers for PF employees. The 239th meeting of the Central Board of Trustees is likely to be held in the first week of March. The final PF interest rates for 2025 and 2026 are expected to be finalised in this meeting.
According to media reports, an interest rate of up to 8 per cent may be offered. If this happens, it would be a reduction of 0.25 per cent compared to last year. This would be a significant setback. However, based on this rate, a substantial amount could be credited to the PF accounts of employees.
How are PF interest rates determined?
After the recommendation of the Central Board of Trustees, the final approval for PF interest rates is given by the Central Finance Ministry. Then, the Ministry of Labour and Employment notifies it. As soon as the notification is issued, the determined interest amount is transferred to the PF accounts of the employees.
Salary limit for PF deduction to increase
Several important issues will be discussed seriously in the meeting of the Central Board of Trustees. To increase social security coverage through EPFO, the salary limit for PF contributions may be increased from Rs. 15,000 to Rs. 25,000 per month.
This has been under consideration for quite some time. This would increase the contribution of employees to their EPFO PF accounts. A substantial amount will be set aside for the future, but this will affect your take-home salary.
For your information, the central government pays interest to PF (Provident Fund) subscribers every year. It provided an interest rate of 8.2 per cent for the financial year 2024-2025. Now, it is considering the interest rate for the financial year 2025-2026. This will benefit approximately 8 crore employees.
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vipin kumar
Vipin Kumar is An experienced journalist with 8 years in the media industry, having worked with prominent news platforms including Dainik Jagran and News24. Currently serving at Timesbull.com for almost four years, dedicated to delivering truthful, transparent, and people-centric news that informs and empowers readers. Committed to transparent, ethical, and...
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