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GOVERNMENT OF INDIA
MINISTRY OF LABOUR AND EMPLOYMENT
LOK SABHA
UNSTARRED QUESTION NO. 5764
TO BE ANSWERED ON 30.03.2026
DEMAND FOR ENHANCEMENT OF EPF INTEREST RATE
5764. SHRI VIJAYAKUMAR ALIAS VIJAY VASANTH:
Will the Minister of LABOUR AND EMPLOYMENT be pleased to
state:
(a) whether the Government has received formal representations
from labour unions seeking enhancement of Employees' Provident
Fund (EPF) interest rate up to ten per cent and if so, the number
of representations and response thereof;
(b) whether the Employees' Provident Fund Organisation (EPFO) has
conducted financial and actuarial analysis to assess feasibility of
increasing EPF interest rate to ten per cent and if so, the findings
thereof;
(c) whether enhancement of the EPF interest rate to ten per cent
would affect long-term sustainability of the provident fund corpus
and if so, the projected financial impact over next decade;
(d) whether the Government has compared current EPF returns with
inflation rates, bank deposit interest rates and interest rate of
other small savings schemes and if so, the comparative analysis
thereof; and
(e) whether consultations have been held with employer associations
and employee representatives regarding proposed increase in EPF
interest rate and if so, the details thereof including outcomes and
consensus reached therefor?
ANSWER
MINISTER OF STATE FOR LABOUR AND EMPLOYMENT
(SUSHRI SHOBHA KARANDLAJE)
(a): No representations have been received from labour unions
by EPFO specifically seeking enhancement of the EPF interest rate
up to ten per cent.
Contd..2/-::2::
(b) to (e): The EPF interest rate declared by EPFO is based on the
actual income earned by the Provident Fund corpus from its
investments. As per Paragraph 60(4) of the EPF Scheme, 1952, the
Central Government is required to ensure that there is no overdrawal
on the Interest Account.
Since the EPF interest rate is based on the actual income
earned by the Provident Fund corpus, it is not comparable with any
other variable.
Further, the rate of interest on EPF is recommended by the
Central Board of Trustees (CBT), EPF, which is a tripartite body
comprising representatives of the Government, Employers, and
Employees.
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