Very good news for EPFO members. The central government is making moves to ease the burden on the middle class. Following the budget announcement, they’re gearing up for another significant decision aimed at working individuals. There’s a lot of buzz about potentially raising the interest rate on the Provident Fund (PF), which would directly benefit millions of employees. If this goes through, it could be a major relief for the middle class.
The PF is a crucial savings tool for those in employment, with the government providing interest on these savings. An increase in the PF interest rate would boost the savings for many in the middle class.
Since the Employees Provident Fund Organization (EPFO) is responsible for all decisions regarding the Provident Fund, everyone is eagerly awaiting the upcoming EPFO board meeting on February 28, where they might decide to raise the interest rates. The government is focused on bolstering the economy, and in the 2025 budget, they announced that income up to Rs 12 lakh will be tax-free.
What’s the current interest rate on PF?
It’s worth noting that discussions about increasing the PF interest rate aren’t new; the government has been raising it consistently for the past two years. In the 2022-23 period, the interest rate was set at 8.15 percent, and then it was bumped up to 8.25 percent for the 2023-24 period. Right now, the PF interest stands at 8.25 percent.
Is there a chance that the interest rate on PF will go up?
While the government hasn’t confirmed anything officially, there are ongoing talks about a potential increase in the PF interest rate. Reports suggest that the central government might raise the rates by 0.10 percent. If this change occurs, it would provide a direct financial advantage to employed individuals, benefiting over 7 crore members of EPFO.