New Delhi: Union Minister for Labour & Employment and Youth Affairs & Sports, Dr. Mansukh Mandaviya, chaired the 237th meeting of the Central Board of Trustees (CBT), Employees’ Provident Fund (EPF), in New Delhi today. The meeting witnessed several significant decisions aimed at enhancing benefits for EPF members and ensuring greater financial security for workers.
8.25% Interest Rate for 2024-25
The CBT recommended an annual interest rate of 8.25% on EPF accumulations for the financial year 2024-25. Following official notification by the Government of India, the Employees’ Provident Fund Organization (EPFO) will credit the interest into subscribers’ accounts. The move reinforces EPFO’s strong financial position and commitment to delivering competitive returns.
Enhancements in EDLI Scheme
A key highlight of the meeting was the approval of modifications to the Employees’ Deposit Linked Insurance (EDLI) scheme. These changes aim to provide greater financial security to the families of EPF members:
- Minimum Benefit for Early Deaths: A life insurance benefit of Rs. 50,000 will now be provided if a member passes away within one year of service.
- Benefit for Non-Contributory Period Deaths: EDLI benefits will be extended to cases where the member dies within six months of their last contribution, provided their name is not removed from the employer’s rolls.
- Service Continuity Consideration: A gap of up to two months between two spells of employment will now be considered as continuous service, ensuring eligibility for EDLI benefits.
These reforms are expected to benefit over 20,000 cases of death in service each year, offering stronger social security to EPF members’ families.
Pension on Higher Wages (PoHW) Implementation
CBT reviewed the progress of implementing the Supreme Court’s judgment on Pension on Higher Wages (PoHW) dated November 4, 2022. EPFO has been working on a mission mode, successfully processing 72% of the applications received under this category.
Centralized Pension Payment System (CPPS)
EPFO has fully implemented CPPS across all Regional Offices since January 2025, ensuring pension disbursements through a single Centralized Pension Disbursement Account (CPDA) maintained at SBI’s New Delhi branch. In January 2025, pensions worth Rs. 1,710 crore were disbursed to 69.35 lakh pensioners, streamlining payments and reducing grievances.
Rationalizing Damages and Litigation Reduction
A key decision was taken to rationalize damages imposed on late remittances of PF dues. The rate of penalty has been standardized at 1% per month of delay, as per the Gazette Notification dated June 14, 2024. Additionally, a statutory mechanism for automatic case abatement upon deposit of damages was discussed, reducing litigation burdens.
Approval of EPFO Budget
CBT approved the revised budget estimates for 2024-25 and the budget estimates for 2025-26 for EPFO and the schemes it administers.
The meeting was attended by Vice-Chairperson Sushri Shobha Karandlaje, Co-Vice-Chairperson Sumita Dawra, Member Secretary Ramesh Krishnamurthi, Central PF Commissioner, and representatives of employers, employees, and senior officers from the Central Government and EPFO.
Comments are closed.