The Employees’ Provident Fund Organisation (EPFO) will hold the 237th meeting of its Central Board of Trustees (CBT) on February 28 to finalize the provident fund (PF) interest rate for 2024-25. The CBT, chaired by the Union Minister for Labour and Employment, comprises representatives from employer associations, trade unions, and government officials.
Key Agenda: PF Interest Rate Decision
While the official agenda has not been released, reports suggest that determining the PF interest rate for 2024-25 will be a priority. For the financial year 2023-24, the EPFO had set the interest rate at 8.25%, an increase from 8.15% in 2022-23. Employees and stakeholders are keenly awaiting whether the rate will be revised further.
Recent Changes in EPFO Policy
In the previous CBT meeting held on November 30, 2024, the board made a crucial change regarding interest payments on PF settlements. Earlier, interest-bearing claims were not processed between the 25th and the end of each month, resulting in a loss of interest for members. Under the new rule, interest will be paid until the date of settlement, improving fund management and reducing delays.
EPFO Membership Growth
EPFO’s Annual Report for 2023-24 highlights a steady increase in contributions:
- The number of contributing establishments rose by 6.6% to 7.66 lakh (from 7.18 lakh in 2022-23).
- Active EPF members grew by 7.6%, from 6.85 crore in 2022-23 to 7.37 crore in 2023-24.
Why the Interest Rate Decision Matters
With more employees contributing to the EPF, the decision on interest rates will have a significant impact on long-term savings for millions of workers across India. The outcome of the February 28 meeting will determine whether contributors can expect higher returns on their provident fund deposits.
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