EPFO Announces Major Updates to Boost Employee Provident Fund Security

The Employees' Provident Fund Organisation (EPFO) has retained the 8.25% interest rate for the 2024-25 fiscal year and introduced enhancements to the Employees' Deposit Linked Insurance scheme, offering improved financial security under challenging circumstances and addressing gaps in service continuity.

The Employees' Provident Fund Organisation (EPFO) has opted to maintain the current 8.25% interest rate on Employee Provident Fund (EPF) deposits for the fiscal year 2024-25. The decision emerged from the 237th Central Board of Trustees meeting, presided over by Union Labour and Employment Minister Mansukh Mandaviya.

The Ministry statement clarified that the government would officially notify the interest rate, post which EPFO would credit it into members' accounts. It's noteworthy that EPF returns surpass many fixed-income options, remaining tax-free up to a set limit, thus continuing as a popular choice among salaried employees.

A part of the latest updates, the Central Board of Trustees has revised the Employees' Deposit Linked Insurance scheme. The revisions now include a minimum insurance benefit and coverage for non-contributory periods, aiming to mitigate previous compliance gaps that affected service continuity.

(With inputs from agencies.)