Members of EPFO: Another relieving news for the salaried class could come following the income tax exemption for the middle class in the budget and the Reserve Bank’s drop in the repo rate. For 2024–25, the Employees’ Provident Fund Organization (EPFO) could keep the interest rate on Provident Fund (PF) deposits above 8%. Sources state that this rate might be about 8.25% of last year.
EPFO’s Central Board of Trustees (CBT) will be together on February 28 and decide on this matter. Still, its official notice will only come out once the Finance Ministry approves.
The Investment Committee and Accounts Review Committee of EPFO will gather next week to evaluate the income and spending before this. Following this assessment, an interest rate will be set to ensure enough money for handling any future emergency.
Also increasing are claims and settlements.
EPFO has seen good returns on investment and a growing number of members in the current financial year. But the settlement of PF claims has also significantly surged this year. With a total value of Rs 2.05 lakh crore, EPFO has so far settled 50.8 million (5.08 crore) claims in 2024–25 according official figures. This projection exceeds the 44.5 million (4.45 crore) claims and settlement of Rs 1.82 lakh crore in 2023–24.
Interest rate is rising constantly.
EPFO has declared last year to offer Provident Fund 8.25% interest. This exceeded 8.15% of 2022-23. EPFO’s overall income then was Rs 1,07,000 crore; in 2022–23 it will be Rs 91,151.66 crore.
When will the funds arrive?
Every year, EPFO makes its recommendation to the Finance Ministry; following their acceptance, it is legally notified. Following this, this interest finds expression in the PF account holders’ accounts. Usually, this process finishes in the second half of the financial year.
EPFO accounts for more than 6.5 crore members, who are keenly awaiting this ruling. For lakhs of working people, it will be welcome news if the interest rate stays at 8.25% this year also.
