By Admin 
PF Interest Rate: If you are also among those people, from whose salary PF (Provident Fund) is deducted every month, then this is useful news for you. In fact, in a meeting of EPFO chaired by Union Labor and Employment Minister Dr. Mansukh Mandaviya, the government kept the interest rate at 8.25 percent for the business period 2025-26.
This is the third consecutive year when there has been no change in the interest rate. In the meeting, the Central Board of Trustees (CBT) of EPFO had suggested only 8.25 percent interest rate for the financial year 2025-26. Despite fluctuations in the global market, the rate of 8.25 percent is considered quite attractive compared to other savings schemes (like FD or PPF).
Now this recommendation of 8.25 percent interest rate of CBT, the body running EPFO, will be sent to the Finance Ministry. This rate will be considered applicable only after getting the green signal from here. As soon as the approval is received from the Ministry, a government notice is issued by the Labor Ministry. After this, the fixed interest rate is considered legally valid and the money is credited to the account.
Auto-Settlement for Small Inoperative Accounts
A major decision has also been taken in the meeting for inactive accounts with less deposits for many years. According to this, claim settlement will now start automatically for inoperative accounts with balance of Rs 1000 or less. Due to this, subscribers will no longer have to visit offices for these small amounts. This decision will benefit 1.33 lakh account holders and approximately Rs 5.68 crore will reach their real beneficiaries.
Easy SOP and Digital Transparency
The Board has issued a new simple Standard Operating Procedure (SOP). It is being made digital, transparent, easy and paperless. Its main objective is to increase efficiency and reduce corruption. Now it will be easier than ever for companies to comply with regulations.
This step of EPFO shows that the government’s focus is not only on interest rates but also on making the system user-friendly. On one hand, the interest rate of 8.25% guarantees a safe investment, while auto-settlement of unclaimed accounts and an amnesty scheme ensure that every penny reaches the employees quickly.
Amnesty Scheme
The purpose of this scheme launched by EPFO is to resolve old disputes between companies and individual taxpayers and to provide an opportunity to waive the penalty. This will provide an opportunity to those companies which are lagging behind in following the rules, so that they can resolve their issues without any huge penalty and ensure the safety of their employees’ money.
Alignment with Social Security Code 2020
The board has approved the new format of EPF, EPS and EDLI scheme. These schemes have now been made according to the Social Security Code 2020. With this, the rules of pension and insurance will become easier and the benefits given to the employees will become more transparent and secure.
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