Following recent tax exemption decisions, a significant announcement regarding Provident Fund (PF) interest rates could be on the horizon. The Central Board of Trustees (CBT) of the Employees’ Provident Fund Organization (EPFO) is set to convene on February 28, where discussions on the interest rate for PF deposits in 2024-25 are expected to take center stage. However, the formal agenda for the meeting has yet to be officially disclosed.
Expected Discussions on PF Interest Rates
According to a report by Business Today, the interest rate for the current financial year has not yet been finalized, as no conclusive decision has been reached. An official communication confirmed that the 237th CBT meeting is scheduled for February 28.
The CBT, which is chaired by the Union Minister of Labor and Employment, serves as the highest decision-making authority of the EPFO. It consists of representatives from employer associations, trade unions, and officials from both the state and central governments.
Interest Rate Trends and Recent Decisions
For the financial year 2023-24, the EPFO had set the PF interest rate at 8.25%, marking an increase from the 8.15% rate of 2022-23. The most recent CBT meeting took place on November 30, 2024, during which a crucial decision was made—ensuring that members will receive interest until the date of settlement.
Additionally, the EPFO Annual Report for 2023-24, which was approved in the last CBT meeting, highlighted notable growth in the organization’s reach. The report revealed that:
- The number of contributing establishments increased by 6.6%, rising from 7.18 lakh in 2022-23 to 7.66 lakh in 2023-24.
- The number of active contributing members saw a 7.6% increase, growing from 6.85 crore in 2022-23 to 7.37 crore in 2023-24.
What to Expect from the February 28 Meeting?
With the EPFO witnessing consistent growth in contributors and establishments, expectations are high regarding a potential revision in interest rates. The upcoming CBT meeting will play a crucial role in determining the PF interest rate for 2024-25, which directly impacts millions of salaried employees across the country.
As the meeting date approaches, all eyes will be on the government’s decision and its potential impact on PF savings for the financial year ahead.