EPFO Maintains Interest Rate on PF Deposits at 8.25% for 2024-25

Synopsis

The EPFO has confirmed the interest rate on employees' provident fund deposits will remain at 8.25% for the fiscal year 2024-25. This decision ensures stability for millions of members and follows an extensive review by the Central Board of Trustees.

Key Takeaways

EPFO maintains interest rate at 8.25% for 2024-25.
Proposal pending clearance from Ministry of Finance.
70% of PoHW applications processed by March 31, 2025.
CPPS implemented, ensuring easy pension access.
Transition to ABPS for secure payments emphasized.

New Delhi, Feb 28 (NationPress) The retirement fund organization EPFO has opted to maintain the interest rate on employees' provident fund deposits at 8.25% for the fiscal year 2024-25, which remains unchanged from the previous year.

This decision was made by the EPFO's Central Board of Trustees during a meeting held on Friday, as per reliable sources.

Previously, the Employees' Provident Fund Organisation had raised the interest rate on EPF for its 7 crore members to 8.25% for 2023-24, up from 8.15% in 2022-23.

The proposal will be forwarded to the Ministry of Finance for approval, after which the interest will be credited to the accounts of EPFO members.

Additionally, the EPFO has successfully processed 70% of the applications submitted under the Pension on Higher Wages (PoHW) scheme and aims to finalize all applications by March 31, 2025, according to an official announcement.

This information was shared during the Executive Committee (EC) meeting of the Central Board of Trustees, EPF, chaired by Labour and Employment Secretary Sumita Dawra.

The committee urged the EPFO to expedite the processing of cases for members who have already made the required contributions, including those from large PSUs, as the higher wages pension scheme is being implemented in line with the Supreme Court ruling on the matter.

To enhance the ease of living for its members, the EPFO is also devising a strategy for simplifying claim processing, which includes rationalizing validations for partial withdrawals. The EC received updates on this progress, and a technical committee has recommended simplifications to validations in Form 31 for advance withdrawals, as stated.

The executive committee was also informed that the Centralised Pension Payment System (CPPS) has been rolled out across all regional offices as of January 2025. This new system allows pensioners to receive their pensions effortlessly from any bank branch throughout the country. In January 2025, 69.4 lakh pensioners accessed their pensions via CPPS, achieving an impressive 99.9% success rate.

The EC highlighted the importance of transitioning to the Aadhaar-Based Payment System (ABPS) within a specified timeframe, which will ensure that pension payments are directly credited into Aadhaar-linked bank accounts, providing a more secure and efficient system.