Suspense continues among millions of subscribers of the Employees’ Provident Fund Organisation (EPFO) regarding the provident fund (PF) interest rate for FY2025–26.
Many people are wondering whether the government will increase the interest rate this year or keep it at 8.25%, the same as last year.
There are strong expectations 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 meeting of the EPFO’s Central Board of Trustees on March 2. If the rate stays the same, it will be positive news for subscribers, as PF returns play an important role in employees’ retirement savings.
EPFO’s Funds and Investment Details
The upcoming meeting in early March will not only focus on the interest rate but also cover several other important matters. According to sources, reforms may be introduced this year to make PF transactions faster and more convenient for subscribers.
Sources have indicated that during the current financial year, the EPFO has generated enough surplus from its investments to maintain the 8.25% interest rate.
However, maintaining such returns in the future may become challenging. Because of this, the EPFO may need to explore new investment strategies.
At present, the EPFO manages funds worth approximately ₹25–26 lakh crore. A large portion of this money is invested in different instruments:
About 41% is invested in state development loans.
Around 16% is invested in central government securities.
Nearly 15.9% is invested in corporate bonds.
Around 9.5% is invested in exchange-traded funds (ETFs).
Recent Meetings and Key Discussions
All eyes are now on the next meeting of the Central Board of Trustees (CBT), which is the highest decision-making body of the 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. This meeting was chaired by Vandana Gurnani, Secretary of the Ministry of Labour and Employment.
During the meeting, the committee reviewed the progress of EPFO schemes and discussed ways to further strengthen the delivery of social security benefits.
