New Delhi, Feb 18- EPFO to set up separate fund to ensure interest rate does not decrease, EPFO is planning to set up a separate fund to ensure that the interest paid to EPFO subscribers continues to remain unchanged.
Around 6.50 crore workers have PF accounts.
EPFO fixes and announces the interest rate for them every year based on the financial market situation.
The interest rate paid for PF accounts in the last financial year 2023-24 is 8.25 percent, and it is likely to continue in the financial year 2024-25 as well.
- 6.50 crore workers are PF subscribers
- EPFO’s interest rate fixing meeting will be held on February 28.
- In 2023-24, 8.25% interest was given on the PF amount
- 8.25% is expected to continue for 2024-25 as well
In this situation, it has been reported that the PF organization is planning to create a fund for interest stability.
Even though the deposit interest rate in the financial market decreases, it is expected that this will help in compensating for the loss from this fund and avoiding reducing the interest.
In this regard, it seems that a discussion was held in the main meeting of the EPFO.
An official said that this will help in avoiding the interest being reduced due to market fluctuations and increasing the interest. He also said that this will lead to additional amount being added to the provident fund saved by the workers.
The official also said that this new rule may come into effect from the financial year 2026-27.
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