EPFO Updates : The tax exemption is likely to be a major decision on the interest rate of the Employees Provident Fund (PF) from the PF financial year 2024-25. The Central Board of Trustees (CBT) is the Employees Provident Fund Organisation (EPFO) will meet on February 28. Interest rate on PF deposits will be the main issue in this meeting. However, the official agenda of the meeting has not been released yet.
Judgement on pending interest rate
According to sources, the final decision on PF interest rate for the current financial year is yet to be finalised. The 237th CBT meeting of EPFO will be held on February 28. The meeting will be chaired by the Union Minister of Labour and Employment. CBT is the most important decision-making body of EPFO. It includes officials from the central and state governments, representatives of employers’ associations and trade unions.
Interest rate has increased as compared to last year
The interest rate on PF deposits was fixed at 8.25% in FY 2023-24 as against 8.15% in 2022-23. The last meeting was held on November 30, 2024, in which it was decided that interest would be paid to the members till the settlement date.
Increasing number of members in EPFO
As per EPFO’s annual report for 2023-24, the number of contributing establishments to the organisation has increased. This number increased from 7.18 lakh in 2022-23 to 7.66 lakh in 2023-24. Also, the number of contributing members increased by 7.6%. It was 6.85 crore in 2022-23, which increased to 7.37 crore in 2023-24.
What can be a big decision on PF?
The interest rate is likely to change in this meeting. The government has already announced a tax exemption, which has brought relief to the employees. Now the interest rate on PF is also an important issue. There has been a marginal increase in the interest rate in the past years, so a change in the rate is possible this time too.
What benefits will the employees get?
If the interest rate increases, it will increase the savings of employees. Getting more interest will strengthen their future financial security. The government intends to provide relief to employees so that planning for their retirement can be easier.
There will be a big announcement on February 28
Now all eyes are on the meeting on February 28. This meeting will decide how much interest will be on PF this year. The employees expect an increase in the interest rate this time.
