EPFO Board to Review Interest Rate for 2024-25 in Key Meeting
EPFO's Central Board of Trustees will meet on Feb 28 to decide the EPF interest rate for 2024-25, with potential changes in social security investments.
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The Employees’ Provident Fund Organization (EPFO) is set to convene a meeting of its Central Board of Trustees (CBT) on February 28, with Labor and Employment Minister Mansukh Mandaviya presiding. The key agenda includes determining the Employees’ Provident Fund (EPF) interest rate for the financial year 2024-25.
With approximately seven crore subscribers, EPFO plays a crucial role in managing social security for private-sector employees. The meeting’s outcome will influence returns on savings for millions. The proposed interest rate must be endorsed by the Finance Ministry after approval from the CBT. Last year, EPFO provided an 8.25 per cent return, following 8.15 per cent in 2022-23 and 8.10 per cent in 2021-22. Given the strong investment performance this year, a similar rate is anticipated.
The meeting is expected to review the need for an Interest Stabilization Reserve Fund to maintain consistent returns for EPF contributors. The objective is to mitigate risks associated with fluctuating interest rates and investment performance. If approved, implementation could begin from the 2026-27 fiscal year.
As the largest retirement savings scheme for private-sector employees, EPFO ensures financial security by mandating monthly contributions from both employees and employers. Subscribers can access funds for purposes such as home purchases, higher education, marriage, or during employment gaps.
The Central Board of Trustees, which includes government officials and trade union representatives, will assess financial conditions before finalizing the EPF rate. A formal announcement is expected following the meeting, pending Finance Ministry approval.
