Ranchi, July 10: The Coal Mines Provident Fund Organisation (CMPFO) has announced an interest rate of 7.6% on coal workers’ provident fund deposits for the financial year 2025-26, maintaining the same rate as the previous fiscal despite demands from trade unions for a higher return.
The decision was notified on July 8, following discussions at the 186th meeting of the CMPFO Board of Trustees held in Varanasi. During the meeting, a proposal to reduce the interest rate from 7.7% to 7.6% was placed before the board.
Trade unions strongly opposed any cut, arguing that reducing returns would adversely affect the financial interests of coal workers.
Board members had earlier indicated that the final decision would be taken after consultations between the Ministry of Coal and the Ministry of Finance.
The organisation eventually retained the interest rate at 7.6%, the same as in 2024-25.
The CMPFO interest rate remains lower than the 8.25% interest currently offered by the Employees’ Provident Fund Organisation (EPFO), highlighting the difference in returns available to coal sector employees.
Meanwhile, the organisation’s pension fund continues to face financial strain as annual withdrawals and pension payouts exceed fresh contributions.
Official figures indicate that CMPFO has around 3.21 lakh active contributors, while the number of pensioners has crossed 4.71 lakh, resulting in higher outflows than inflows.
To strengthen the pension fund, the government has implemented several measures, including the imposition of a 20% cess on coal production.
However, officials acknowledge that the fund continues to remain under pressure due to the widening gap between contributors and beneficiaries.
The latest announcement is expected to benefit lakhs of coal workers covered under the CMPFO, while discussions on ensuring the long-term sustainability of the pension fund are likely to continue.
