New Delhi [India], March 1 (ANI): The Central Board of Trustees (CBT) recommended an 8.25 per cent annual rate of interest to be credited on Employees' Provident Fund (EPF) accumulations in members' accounts for the financial year 2024-25.

According to an official release, the Government of India will officially notify the interest rate, following which EPFO will credit the rate of interest into the subscribers' accounts.

Union Minister Mansukh Mandaviya chaired the 237th meeting of the Central Board of Trustees (CBT), EPF, in New Delhi on Friday.

Compared to many other fixed-income instruments, the Employees' Provident Fund (EPF) offers relatively high and stable returns, ensuring steady growth of savings. The interest earned on EPF deposits is tax-free (up to a specified limit), making it a highly attractive investment option for salaried individuals. This reflects strong confidence in the credit profile of EPFO's investments and its ability to deliver competitive returns to its members.

Further continuing with the reform agenda, the CBT, under the Chairmanship of Mansukh Mandaviya, made a series of path-breaking decisions during the CBT meeting.

The major decisions made by the Board in the meeting include the enhancement of insurance benefits under the EDLI Scheme.

'Following the actuarial valuation of the Employees' Deposit Linked Insurance (EDLI) scheme, the Board approved key modifications in a 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 release said.

Key enhancements under the revised scheme include providing a minimum life insurance benefit of Rs 50,000 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 deaths in service every year.

Second, previously, EDLI benefits were getting denied in such cases, considering these as death away from service. 'Now, if a member passes away within six months of their last contribution received, the EDLI benefit will be admissible, provided the member's name is not stuck off from rolls. The modification is estimated to result in benefits for more than 14,000 cases of such death cases every year,' the release mentioned.

'Earlier, a gap of even one or two days (such as weekends or holidays) between employment in two establishments led to the denial of minimum EDLI benefits of Rs 2.5 lakh and a maximum of Rs 7 lakh, as the condition continuous service of one year was not met. Under the new modifications, a gap of up to two months between two spells of employment will now be considered as continuous service, ensuring eligibility for higher quantum EDLI benefits. This change is expected to benefit more than 1,000 cases of deaths in service, every year,' it added.

The modifications are estimated to result in higher benefits under EDLI in more than 20,000 cases of death in service every year. These improvements aim to enhance the social security benefits for families of EPF members, ensuring better financial protection and reducing hardships faced by families in distress. (ANI)