The Provident Fund (PF) is a reliable retirement savings scheme for millions of employees across the country, managed by the Employees Provident Fund Organization (EPFO). Each year, EPFO sets interest rates based on the deposits made by its members. This year, there are rumors that the interest rate won’t see any significant changes.
Sources indicate that the EPFO’s Central Board of Trustees (CBT) is scheduled to meet on February 28 to finalize the interest rate for 2024-25. It’s anticipated that the rate will stay above 8%, likely around the 8.25% announced for 2023-24. The interest rates have been quite stable in recent years, and only a slight adjustment is expected this time around.
Before the meeting, the Investment and Accounts Committee will compile a report evaluating the organization’s income and expenses. This report will help propose an interest rate that ensures there are enough funds to handle any future financial challenges.
More Read
According to a report from the Economic Times, EPFO has seen solid returns on its investments this financial year. However, there has also been a notable rise in claim settlements. Data shows that in 2024-25, EPFO settled over 50.8 million claims, totaling Rs 2.05 lakh crore, compared to Rs 1.82 lakh crore for 44.5 million claims last year.
More Read
With over 65 million subscribers, EPFO paid an interest rate of 8.25% in 2023-24, which was the highest ever, based on an income of Rs 1.07 lakh crore and a total principal amount of Rs 13 lakh crore. In 2022-23, the interest rate was 8.15% with a principal of Rs 11.02 lakh crore and an income of Rs 91,151.66 crore. The interest rate proposal is crafted by EPFO and requires approval from the CBT.
