EPFO Enhances Financial Security with New Insurance Benefits

The Employees' Provident Fund Organisation (EPFO) has retained its 8.25% interest rate for EPF deposits in 2024-25 and enhanced insurance benefits under the EDLI scheme. These changes aim to provide greater financial security to members and benefitting numerous cases of death in service annually.

The Employees' Provident Fund Organisation (EPFO) has announced the retention of an 8.25% interest rate on EPF deposits for the fiscal year 2024-25, affecting over seven crore subscribers. This decision was confirmed at the 237th Central Board of Trustees (CBT) meeting on Friday, chaired by Union Labour & Employment Minister Mansukh Mandaviya.

The EPF continues to offer competitive returns compared to other fixed-income investments, with interest earnings being tax-free up to a certain limit, making it an appealing option for salaried individuals. The recent meeting also introduced significant changes to the Employees' Deposit-Linked Insurance (EDLI) scheme, which promises enhanced financial support for members' families.

One critical development is the approval of a minimum insurance benefit for deaths occurring within one year of service, while modifying eligibility conditions to cover more cases. These changes are projected to increase benefits in over 20,000 death-in-service cases annually. The EPFO is also making strides in processing applications related to the Supreme Court Judgment on Pension on Higher Wages (PoHW).

(With inputs from agencies.)