The Employees’ Provident Fund Organisation (EPFO) has introduced new and stricter rules for companies that manage their own provident fund (PF) trusts.
These changes aim to protect the retirement savings of nearly 3.2 million employees, worth around ₹3.50 lakh crore. The decision was approved by the Central Board of Trustees (CBT), chaired by Labour Minister Mansukh Mandaviya.
The main focus is to improve transparency, safety of funds, and employee benefits.
Strict Rules for Private PF Trusts
Under the new Standard Operating Procedure (SOP), more than 1,250 private PF trusts in India must now ensure that their benefits are equal to or better than EPFO standards.
If any trust fails to follow this rule, it will lose its exempt status immediately. This means it will no longer be allowed to operate independently.
Also, inactive and non-KYC PF accounts will now be transferred to EPFO along with interest. This step is taken to reduce misuse and improve record management.
New Limits on Interest Rates
The EPFO has also placed a cap on how much interest private trusts can give to employees.
Now, trusts can offer a maximum of 2% (200 basis points) more than the EPFO interest rate.
This rule was introduced because some companies were reportedly offering extremely high interest rates of 30%–34%, which could create financial risks and instability.
The new limit aims to keep the system safe and balanced for all employees.
Digital Monitoring and Employee Grievance System
The new SOP also brings major changes in monitoring and complaints handling.
Instead of yearly physical inspections, trusts will now undergo digital and risk-based audits. Only trusts with higher risks will be closely checked.
Every private PF trust must also set up an online grievance portal. This system will be directly linked with EPFO, allowing employees to file complaints easily and track their status online.
This move is expected to improve transparency and reduce delays in resolving issues.
Companies That Will Be Affected
Many large private companies manage their own PF trusts, and they will be directly affected by these new rules.
Some of the major names include Tata Group companies, Wipro, Infosys, Reliance Industries, Larsen & Toubro (L&T), TVS Motor, and Raymond Limited.
These companies will now need to ensure full compliance with EPFO guidelines to continue operating their PF trusts smoothly.
