Govt ratifies interest rate of 8.25% on employees' provident fund for fiscal 2024-25

In February, Union Minister for Labour & Employment Dr Mansukh Mandaviya chaired the 237th meeting of the Central Board of Trustees (CBT), EPF, in New Delhi, in which the recommendation was made.

During the meeting, the Central Board of Trustees (CBT) had recommended an 8.25 per cent annual rate of interest to be credited on Employees' Provident Fund (EPF) accumulations in members' accounts for the fiscal year 2024-25.

Following the official ratification, the EPFO will credit the rate of interest into the subscribers' accounts.

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.

After the meeting, Union Minister Dr Mansukh Mandaviya took a series of pathbreaking decisions.

Following the actuarial valuation of the Employees' Deposit Linked Insurance (EDLI) scheme, the Board approved key modifications in the scheme to provide greater financial security and support to the families of members.

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. This amendment is expected to result in higher benefits for more than 5,000 cases of deaths in service every year.

As part of the revised EDLI Scheme, 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 struck off from the rolls.

Under the new modifications, a gap of up to two months between two spells of employment will now be considered as continuous service, ensuring eligibility for higher quantum EDLI benefits.

The Employees' Provident Fund Organisation (EPFO) has added 14.58 lakh new members in March. The year-on-year analysis reveals an increase of 1.15 per cent in net payroll additions compared to March 2024. (ANI)