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Informist, Friday, Feb. 28, 2025

 

--Govt: EPFO central board recommends retaining 8.25% interest rate for FY25 

 

NEW DELHI – The Central Board of Trustees of the Employees' Provident Fund Organisation Friday recommended retaining the 8.25% interest rate for its subscribers for 2024-25 (Apr-Mar), the labour ministry said Friday. The EPFO had raised the rate of interest by 10 basis points to 8.25% for FY24.

 

The interest rate would be ratified by the finance ministry before, following which EPFO would credit the rate of interest into the subscribers' accounts. The interest rate was left unchanged at 8.25% for FY25 even as the Reserve Bank of India lowered the policy repo rate by 25 bps to 6.25% earlier this month.

 

At the 237th meeting of the Central Board of Trustees of the EPFO on Friday, the central board also decided to enhance the insurance benefits under the Employees' Deposit Linked Insurance scheme, the ministy said in a release. 

 

"Following the actuarial valuation of the Employees' Deposit-Linked Insurance 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," the ministry said.

 

Under the scheme, a minimum life insurance benefit of INR 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, the ministry said. 

 

Further, a gap of up to two months between two spells of employment will now be considered as continuous service, ensuring eligibility for higher quantum benefits under the deposit-linked insurance scheme. The Board also approved the revised estimates for FY25 and Budget estimates for FY26 for EPFO and the schemes administered by it.  End

 

Reported by Shubham Rana

Edited by Tanima Banerjee

 

 

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