The government can give a big shock to crores of EPFO members. On Friday, the government can announce its interest in EPFO. In such a situation, it is believed that the Central Board of Trustees of EPFO can cut the interest received on the money deposited in PF. Keeping in mind the fall in stock markets bond yields and more claim settlements, the Central Board of Trustees of EPFO may reduce the interest rate for FY2024-25. This will affect the interest rate given on the retirement savings of 300 million members.
Meeting to be held tomorrow
A meeting is to be held tomorrow i.e. Friday 28 February to decide on the interest rate of EPF for 2024-25. In this meeting, a big decision can be taken on the interest received on the money deposited in PF, which will have a direct impact on the number of crores of EPFO members. Last year, the government increased the interest rate of EFP from 8.15 percent to 8.25 percent. At the same time, it is now believed that it can be cut.
Why will the interest be cut?
According to a Business Standard report, the board's investment committee met last week to discuss the income and expenditure profile of the EPFO, so that the EPF rate could be recommended. On the condition of anonymity of the employer representative on the board, a Business Standard report said that the interest rate this year may be lower than last year. This is because bond yields have fallen in recent months. In such a situation, if a higher interest rate is announced to deal with an emergency, the retirement fund body will not be left with much surplus.
Apart from this, the high demand for claim settlement has left a low pool for annual EPF credit. As of January, the EPFO has processed over 5.08 million claims of ₹2.05 trillion in 2024-25. Whereas in 2023-24, more than 44.5 million claims worth ₹1.82 trillion have been settled.
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