The Employees' Provident Fund Organisation (EPFO) is likely to recommend an interest rate of 8% for the financial year 2024-25 ahead of Lok Sabha Elections 2024, reported Economic Times. EPFO seek the board's approval to substantially increase its investment in stocks to 15% from around 10% now to enhance the return on investments.
"This being an election year, the government will ensure a sustainable rate of return on provident fund (PF) deposits, which is also at par with the existing rates to avoid any backlash," said an EPFO board member. The retirement fund body has over 6 Crore registered subscribers. The body has credited an 8.15% interest rate in FY2023-24 and 8.10% in FY2022.
According to the report, the EPFO has circulated the agenda for the 235th meeting of the CBT scheduled for February 10, which includes an update on pensions, budgetary estimates and compliance issues. While the interest rate and equity investment matters are not part of the agenda circulated by the EPFO, the retirement fund body is likely to introduce the two items before the CBT with the permission of its chairman, the labour minister.