EPF Interest Rate: Is the interest on PF really going to be 10%? Government gave big update in Parliament!

EPFO Interest Rate Hike News: For crores of employees working in the private sector, EPF (Employees’ Provident Fund) is not just a savings account but is the biggest stick for old age. At present, the interest rate of 8.25% available on EPF is considered much better than other saving schemes, but there is a strong discussion on social media and in the corridors whether this interest rate can be increased to 10%? Recently, direct questions were asked to the government on this issue in the Lok Sabha, after which the Labor Ministry has completely clarified the situation. Question of 10% interest echoed in the Parliament. In the Lok Sabha, MP Vijay Kumar alias Vijay Vasant asked sharp questions to the government regarding the interest rates of Employees’ Provident Fund. He asked whether the government is considering taking the EPF interest rate to 10% and has EPFO ​​made any assessment of its financial feasibility? This question raised the hopes of lakhs of employees who are looking for higher returns on their retirement funds. Labor Minister gave written answer: What is the truth? Giving a formal answer to these questions, Minister of State for Labor and Employment Shobha Karandlaje clarified that at present no such proposal is under consideration with the government. He said that till now EPFO ​​has not received any formal application or demand letter from any Labor Union, in which it has been requested to increase the interest rate to 10%. It has become clear from this statement that at present there is no pressure or plan to increase the rates. How is your interest rate decided? Often people think that the government decides the interest rates as per its own wish, but the minister explained its entire process. He said that the interest rates of EPF depend on the actual income from investments made by the huge corpus of the Provident Fund. Employees are given a share based on the returns received from the places where EPFO ​​invests its money. This means that unless the returns on investment increase, a huge increase in interest rates is not possible. Important role of Central Board of Trustees (CBT) The responsibility of recommending interest rates rests with the ‘Central Board of Trustees’ (CBT). It is a tripartite body consisting of representatives of the government, employers and employees. It is this board that decides what is the health of the fund at the end of the financial year and how much benefit can be given to the employees. There is also a big change in the income tax rules amidst the discussion about EPF, there is another big news for the taxpayers. With the new financial year, the Income Tax Act 2025 has come into force, which has changed the old rules of 1962. The government has also notified all ITR forms for Assessment Year (AY) 2026-27. In such a situation, employed people will now have to manage their tax planning and PF investment according to the new rules.