EPFO Update – For private sector employees whose provident fund (PF) contributions are deducted, the government announces the annual interest rate. However, this time, the demands of PF employees are quite different. PF employee organisations are demanding an increase in their minimum pension amount. They are demanding an increase in the minimum amount received under the Employees’ Pension Scheme (EPS).

Currently, the government has denied that any such proposal is pending in Parliament. But now employees have high hopes for Budget 2026. They expect that the central government may announce EPS during the budget session. If their minimum pension amount is increased, it will be a significant benefit for employees working in private companies.

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How much could the EPS amount be?

It is currently uncertain how much the minimum pension amount for PF employees will be after retirement. There is speculation on social media that the minimum EPS amount could be increased to Rs 6,000. If the amount is increased to Rs 6,000, it would be an increase of Rs 5,000 per month.

Currently, the Employees’ Pension Scheme amount is Rs 1,000. This amount has not been changed since 2014. Now all employees are waiting for the government’s approval.

However, the central government has stated in the Rajya Sabha that there is no plan to increase the amount. Union Minister of State for Finance, Pankaj Chaudhary, had stated in response to a question in Parliament that the government does not have any proposal to increase the EPS amount. Now all eyes are on Budget 2026.

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How much interest can be expected?

Besides the increase in the Employees’ Pension Scheme amount, the other major topic of discussion is the interest rate. The central government will decide on the interest rate for PF employees this time. There is a possibility that a 9 per cent interest rate will be announced for the financial year 2025-2026.

This announcement may be made after the budget. In the last financial year 2024-2025, an interest rate of 8.2 per cent was provided. This time, this amount may be increased.