Mega update for crores of EPFO members. Recently, the Employees’ Provident Fund Organisation (EPFO) has been making moves to enhance the benefits for its members. They’re focusing on safeguarding the financial perks that members get from market ups and downs.

 

As reported by The Economic Times, the government is looking into the possibility of establishing stable interest rates for EPFO members. The Ministry of Labor and Employment is currently conducting an internal review on this matter. There’s also talk of setting up an interest stabilization reserve fund within the EPFO.

 

So, what’s the upside?

According to officials, this initiative could help around 6.5 crore members. Market fluctuations from various investments can negatively affect the returns for members, leading to inconsistent income—sometimes higher, sometimes lower.

 

With a stabilization fund in place, members wouldn’t have to stress about their PF deposits, as they would receive a consistent return regardless of changing interest rates.

 

To fund this initiative, any extra interest earned would be utilized. The report suggests that a decision on this plan could be made by the end of the year. If the Central Board of Trustees (CBT) of EPFO gives the green light, it could roll out in the next financial year.

 

CBT Meeting on the Horizon

The CBT meeting for EPFO is set for February 28. Reports suggest that one of the key topics will be the interest rates on PF deposits. Members are optimistic that the rates might see an increase during this meeting, which will be led by the Minister of Labor and Employment.

 

However, some media sources indicate that the organization might keep the rates around 8.25%. The EPFO proposes the interest rate, which is then discussed in the CBT meeting before being sent to the Finance Ministry for final approval.

 

What’s New with EPFO?

In the previous CBT meeting on November 30, 2024, interest was credited on claims settled by the 24th of the month for that month. This time around, a new rule was introduced to pay interest up until the settlement date.