Interest rate on Employees Provident Fund (EPF) deposits and Investment Transparency

Interest rate on Employees Provident Fund (EPF) deposits and Investment Transparency. The Lok Sabha Unstarred Question No. 3874 seeks clarification from the Minister of Labour and Employment regarding the interest rate on Employees Provident Fund (EPF) deposits. Key inquiries include whether EPFO received requests for a rate increase, details about its corpus fund and diversification, the criteria for calculating the interest rate, and measures for transparency in investments. The Minister’s response outlines that EPFO operates under established guidelines, maintains a healthy investment corpus, and publishes annual reports detailing fund performance, ensuring accessibility and benefit to all EPFO account holders.

GOVERNMENT OF INDIA
MINISTRY OF LABOUR AND EMPLOYMENT
LOK SABHA

UNSTARRED QUESTION NO. 3874
TO BE ANSWERED ON 24.03.2025

INTEREST RATE ON EMPLOYEES PROVIDENT FUND DEPOSITS

3874. SHRI CHAVAN RAVINDRA VASANTRAO:
SHRI SUDHEER GUPTA:
SHRI DHAIRYASHEEL SAMBHAJIRAO MANE:

Will the Minister of LABOUR AND EMPLOYMENT be pleased to state:

(a) whether the Employees Provident Fund Organisation (EPFO) has received a request to slightly increase the interest rate on Employees Provident Fund deposits for the current year;

(b) if so, the details thereof and the response of the EPFO in this regard;

(c) whether the EPFO has a healthy corpus fund and have good earning through diversification of this fund and if so, the details thereof;

(d) the criteria/process followed or being followed by the Government to calculate the interest for EPFO for a year; and

(e) the steps taken by the Government to make investment made from the EPFO fund transparent and accessible and percolate the benefits to all EPFO account holders across the country?

ANSWER

MINISTER OF STATE FOR LABOUR AND EMPLOYMENT (SUSHRI SHOBHA KARANDLAJE)

(a) to (e): As per the provisions outlined in sub-para (1) of Paragraph 60 of the Employees’ Provident Funds Scheme, 1952, the Employees’ Provident Fund Organization (EPFO) is required to credit interest to the account of each member at a rate determined by the Central Government in consultation with the Central Board of Trustees (CBT).

EPFO has healthy Investment corpus and investment is made as per Pattern of Investment notified by the Ministry of Labour and Employment, Government of India and guidelines issued by Central Board of Trustees, EPFO from time to time. The Pattern of Investment encompasses more than 21 types of instruments giving latitude for diversification to EPFO.

The interest rate is calculated by taking into consideration the estimated Principal in member accounts and estimated income from various instruments like Government Securities, Debt instruments, Equities etc, EPFO is publishing all the fund related data through Annual reports on yearly basis. Further category-wise detail along with investment maturity and closing balance of the Investment is published in Annual Accounts of EPFO.

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