EPFO Update: Great News for Employees! New Tax Slab Brings Bigger PF Benefits!

EPFO Meeting: An increase in the interest rate on PF deposits may now be announced by the Indian government. This is feasible at the EPFO Central Board of Trustees meeting scheduled for February 28.

Meeting of the EPFO: The Government EPFO Gathering: The Indian government has continued to provide the middle class with numerous perks, both within and outside of the budget, to stimulate the flagging Indian economy. One after the other, promises and announcements are being made. All of this is done to increase demand in the market by putting more money in people’s pockets and boosting spending, which will help the market pick up steam.

Thus, the Indian government can now declare a rise in the interest rate on PF savings in addition to the budget’s declaration of tax-free income up to Rs. 12.75 lakh. This is feasible at the EPFO Central Board of Trustees meeting scheduled for February 28. The Union Labor Minister will preside over the gathering. This gathering will also include representatives from trade unions and employer associations. India is now able to declare that the interest rate on PF deposits will rise. This is feasible at the EPFO Central Board of Trustees meeting scheduled for February 28.

Thus, the interest rate will rise.

At the moment, increasing market demand is the Indian government’s top priority. It is doing this in some ways. To encourage people to raise their domestic consumption as much as feasible, the government should demonstrate that they are generating more money from other sources after providing tax-free income up to Rs 12 lakh. As a result, it’s feasible that the PF interest rate will rise in 2024–2025.

In the past two years, the Indian government has taken this action. The PF interest rate was raised to 8.15 percent in 2022–2023. It was raised to 8.25 percent in 2023–2024. As a result, based on bank base rates, it appears that PF interest rates could be raised, albeit marginally.

Over 7 crore people have PF accounts.

Over seven crore people have accounts with EPFO. The 2023–24 annual report said that this figure was seven crore 37 lakh. In a similar vein, almost eight lakh people have deposited money into the EPFO pension fund.

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