New Delhi, Feb 28 (UNI) The Government has retained 8.25 rate of interest on Employees Provident Fund (EPF) for the financial year 2024-25.
“The Central Board of Trustees (CBT), EPF, recommended 8.25% annual rate of interest to be credited on EPF accumulations in members’ accounts for the financial year 2024-25. The interest rate would be officially notified by the Government of India, following which EPFO would credit the rate of interest into the subscribers’ accounts,” Ministry of Labour & Employment said in a statement after the meeting of the CBT.
The meeting was chaired by Union Minister for Labour & Employment and Youth Affairs & Sports, Dr. Mansukh Mandaviya.
Compared to many other fixed-income instruments, the Employees’ Provident Fund (EPF) offers relatively high and stable returns, ensuring steady growth of savings. The interest earned on EPF deposits is tax-free (up to a specified limit), making it a highly attractive investment option for salaried individuals. This reflects strong confidence in the credit profile of EPFO’s investments and its ability to deliver competitive returns to its members, the Government said.
Further continuing with the reform agenda, the CBT, under the Chairmanship of Dr. Mandaviya, took few more decisions during the CBT meeting. The major decisions taken by the Board in the meeting include, enhancement of insurance benefits under EDLI Scheme. Following the actuarial valuation of the Employees’ Deposit Linked Insurance (EDLI) scheme, the Board approved key modifications in scheme to provide greater financial security and support to the family of members. This will address major grievances under this category and ensure a more inclusive approach to benefit claimants.
Minimum Benefit Introduced for death within one year of service. A minimum life insurance benefit of Rs. 50,000 will be provided in cases where an EPF member dies without completing one year of continuous service, the statement said adding this amendment is expected to result in higher benefits for more than 5,000 cases of deaths in service, every year.
Benefit for Members who die while in service after a non-contributory period. Previously, EDLI benefits were getting denied in such cases considering these as death away from service. Now, if a member passes away within six months of their last contribution received, the EDLI benefit will be admissible, provided the member’s name is not stuck off from rolls. The modification is estimated to result in benefits for more than 14,000 cases of such death cases every year.
