Millions of subscribers of the Employees’ Provident Fund Organisation (EPFO) are waiting to know this year’s PF interest rate for FY 2025–26.
The main question is whether the government will increase the interest rate on provident fund deposits or keep it at 8.25%, the same as last year.
It is expected that the interest rate will remain unchanged at 8.25% for the third year in a row. A final decision is likely to be taken at the EPFO Central Board of Trustees meeting on March 2.
If this rate is approved, it will be good news for EPFO subscribers because a stable return on PF deposits directly supports employees’ retirement savings.
EPFO Fund Size and Investment Details
The March meeting will not only discuss the interest rate but also several other issues. According to sources, reforms may be introduced this year to make PF transactions faster and easier for subscribers.
Sources also say that EPFO has enough surplus from its investments this financial year to continue the 8.25% interest rate.
However, maintaining such returns may become difficult in the future. Therefore, EPFO may need to explore new investment methods.
At present, EPFO manages about ₹25–26 lakh crore in funds. A large part of this money is invested in different instruments:
Around 41% in state development loans
About 16% in central government securities
Nearly 15.9% in corporate bonds
Around 9.5% in exchange-traded funds
Recent and Upcoming EPFO Meetings
All attention is now on the upcoming meeting of the Central Board of Trustees (CBT), the highest decision-making body of EPFO. The CBT is chaired by Labour and Employment Minister Mansukh Mandaviya.
Before the March 2 meeting, the 116th meeting of the CBT’s Executive Committee was held in New Delhi on February 16. It was chaired by Vandana Gurnani, Secretary in the Ministry of Labour and Employment.
During this meeting, the committee reviewed the progress of EPFO schemes and discussed steps to strengthen social security services for subscribers.