Salaried Employees Await Verdict on PF Interest Rate
Will Your PF Earnings Grow? Crucial Rate Decision Coming Soon: The big question for PF subscribers is whether the government will increase the Provident Fund (PF) interest rate this year or keep it at 8.25%, the same as last year.
Reports suggest that for the third consecutive year, the interest rate is likely to remain unchanged at 8.25%. A final decision is expected at the EPFO Central Board of Trustees (CBT) meeting on March 2.
If the rate stays the same, it will bring relief to millions of employees, as PF returns are directly linked to their retirement savings.
How Much Money Does EPFO Manage?
The EPFO currently manages around ₹25–26 lakh crore.
The funds are mainly invested in:
-State Development Loans (41%)
-Central Government Securities (16%)
-Corporate Bonds (15.9%)
-Exchange-Traded Funds (ETFs)
Sources say EPFO has enough surplus this year to maintain the 8.25% interest rate. However, sustaining such returns in the future may be challenging, and new investment strategies may be needed.
What Happened Recently? Before the March 2 meeting, the 116th Executive Committee meeting was held on February 16 in New Delhi. The meeting reviewed EPFO schemes and discussed ways to improve social security services and make PF transactions faster and easier. Now, all eyes are on the March 2 CBT meeting for the final decision on the PF interest rate.
