EPFO recommends 8.25% interest on EPF for 2024-25
Economy
5 min read
The Central Board of Trustees of the Employees’ Provident Fund Organisation (EPFO) has recommended an interest rate of 8.25 % on Employee Provident Fund (EPF) deposits for the fiscal year 2024-25. Last year, the EPF interest rate was 8.25 %.
The decision to keep the interest rate unchanged was taken at the 237th meeting of the Central Board of Trustees of the EPFO, held in New Delhi on 28th February 2025.
The proposal will now go to the Union Ministry of Finance, and if it is approved, the interest amount will be credited to the EPF subscribers' account by the EPFO.
Who chaired the EPFO meeting
The EPFO is under the administrative control of the Union Ministry of Labour and Employment.
The 237th meeting of the Central Board of Trustees of the EPFO meeting was chaired by the Union Minister for Labour & Employment and Youth Affairs & Sports, Dr. Mansukh Mandaviya.
Increase in insurance benefits under EDLI Scheme
- The meeting also approved an increase in the insurance benefits under the Employees’ Deposit Linked Insurance (EDLI) scheme.
- A minimum life insurance coverage of Rs 50,000 will be provided in cases where an EPF subscriber dies without completing one year of continuous service.
- Insurance benefits will also be provided to members who die while in service after a noncontributory period.
About the EPFO and its Scheme
The Employees Provident Fund Organisation was set up on 15 November 1951.
It was made a statutory body in 1952 under the provision of the Employees Provident Funds and Miscellaneous Provisions Act 1952.
It is applicable all over India, including Jammu and Kashmir.
It is under the administrative control of the Union Ministry of Labour and Employment.
The Central Board of Trustees of the Employees’ Provident Fund Organisation (EPFO) administers the scheme of the EPFO.
The Central Board consists of representatives from the central state government, employers, and employees.
The Central Board administers the EPF, EPS, and EDLI schemes.
About Employees Provident Fund
- It is applicable for an employee of 18-54 years of age and employed in an organised sector.
- The maximum wage of the worker shall be Rs 15,000.
- In enterprises having less than 20 workers, the contribution of the employer will be 10 % of the basic wage and dearness allowance. An equivalent amount will be deducted from the employee's account.
- For enterprises having 20 or more workers, the contribution will be 12 % of the basic wage +dearness allowances..
- The EPFO will pay interest on these amounts, and after retirement, the worker receives a lump sum payment and pension.
- Partial withdrawal is allowed in EPF for specific reasons.
- All the contribution of the employees goes to EPF.
Out of the Employee’s 12% contribution to the EPF, 8.33 % is allocated to EPS, 3.67 % goes to the EPF, and 0.50 % goes to the EDLI account.
Employees Pension Scheme (EPS)
- It was introduced by EPFO in 1995.
- It is for the EPF subscriber.
- After retirement, the employee gets a pension.
Employee’s Deposit Linked Insurance Scheme (EDLI)
- It was launched in 1976.
- It provides term life insurance cover to the EPF subscriber
- If the employee dies while being a member of the EDLI scheme, a lump sum amount is paid to their family members.
