New Delhi: Every year, the first week of March is very important for millions of employees working in private sector and public sector enterprises (PSUs). The reason for this is that during this period the interest rate on PF (Provident Fund) is fixed. For the financial year 2024-25, Employees Provident Fund Organization members can get 8.25% interest on their retirement savings. This is more than the amount deposited in any bank. Because of this, it is helpful in securing the future of the employees, and lakhs of EPFO ​​members are waiting for the increase in interest rates.

shocking news

But, now a shocking news is going on the internet. That is, this time there is going to be a huge reduction in interest rates. Before knowing about this, it is important to understand how the interest rate is decided. A meeting of the Central Board of Trustees (CBT) is called in the first week of March. CBT is the biggest decision making body of EPFO, which looks after how the money will be managed, invested and distributed. The Employees Provident Fund Organization (EPFO) decides the interest rate in the upcoming Central Board of Trustees (CBT) meeting. The CBT then sends the rate recommendation to the Finance Ministry for approval, which evaluates the rate and may accept the recommendation as is or suggest changes before approval.

Will interest rates go down?

This rate has remained at 8.25% for the last two years. Now the news is going around that its rate is being reduced. But, there is no official information about this. For the third consecutive year, Employees Provident Fund Organization members can expect to get 8.25% interest on their retirement savings. If the interest rate had been reduced this time, the official information would have come out by now. Therefore, there is no truth in the news circulating on social media. Whatever the case, it will be decided in the meeting to be held on March 2. Will have to wait till then.

How is the calculation done?

EPFO calculates the interest rate based on the monthly balance of the member, but it is credited to their account at the end of every financial year. At present, EPFO ​​has a total of ₹25-26 lakh crore, which is invested in equity and debt instruments. According to sources, about 41 percent of this amount has been invested in State Development Loan (SDL), 16 percent in central government securities, 15.9 percent in corporate bonds and 9.5 percent in exchange-traded funds (ETF). In 2024, EPFO's investment portfolio was expected to yield a return of 7.62 per cent, while the interest rate for members was fixed at 8.25 per cent.