Government Confirms No Request for EPF Interest Rate Increase to 10%
Will EPF interest rate rise to 10%? Central government clarifies stance on rate hike and feasibility
The Economic Times
Image: The Economic Times
The Indian government has confirmed that no formal request has been made by labor unions to raise the Employees’ Provident Fund (EPF) interest rate to 10%. Currently, the EPF interest rate stands at 8.25%, unchanged since the Financial Year 2022-23, as clarified by Labour and Employment Minister Shobha Karandlaje.
- 01No formal request from labor unions for a 10% EPF interest rate.
- 02Current EPF interest rate is 8.25%, last revised in FY 2022-23.
- 03Interest rate is determined by the Central Board of Trustees (CBT), which includes government, employer, and employee representatives.
- 04EPF members will not lose interest due to delays in crediting.
- 05EPFO's new rules ensure interest accrues until the date of claim settlement.
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In a recent statement in the Lok Sabha, Labour and Employment Minister Shobha Karandlaje clarified that the government has not received any formal requests from labor unions to increase the Employees’ Provident Fund (EPF) interest rate to 10%. The current EPF interest rate remains at 8.25%, a figure that has not changed since the Financial Year 2022-23. The interest rate is set by the Central Board of Trustees (CBT), which consists of representatives from the government, employers, and employees. Karandlaje explained that the EPF interest rate is determined based on actual income earned by the Provident Fund corpus, making it non-comparable to other variables. Additionally, the EPFO (Employees' Provident Fund Organisation) has assured members that they will not incur any interest loss due to delays in crediting interest to accounts, following rule amendments made in November 2024 that allow interest to accrue until the date of settlement.
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The stability of the EPF interest rate at 8.25% means that employees relying on this fund for retirement savings will not see an increase in their returns, potentially affecting their long-term financial planning.
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