The EPFO Central Board has announced its latest update! The EPFO interest rate has been set at 8.25% on provident fund deposits for FY 2024-25. Additionally, the board has enhanced insurance benefits under the Employees’ Deposit Linked Insurance (EDLI) scheme, ensuring better financial security for the families of EPF members.
But what does this mean for you? Will this decision help protect retirement savings and improve benefits for beneficiaries?
Let’s explore!
EPFO Interest Rate 2024-25: Latest Updates
- EPFO retains an 8.25% interest rate on PF deposits for FY 2024-25.
- Decision taken by the EPFO Central Board at its 237th meeting.
- Interest rate will be credited after final approval from the government.
- Employees’ Deposit Linked Insurance (EDLI) scheme benefits enhanced.
- Minimum life insurance benefit of ₹50,000 introduced under EDLI.
- Job gaps of up to two months will be considered as continuous service.
- New EDLI rules expected to benefit over 5,000 families annually.
- EPFO interest rate was increased from 8.15% to 8.25% in 2023-24.
- Lowest EPF interest in four decades was 8.1% in 2021-22.
- EPF remains one of the safest long-term savings options for employees.
About EPFO
The Employees’ Provident Fund Organisation (EPFO) is a statutory body under the Ministry of Labour and Employment, Government of India.
It manages the following:
Employees’ Provident Fund (EPF)
Employees’ Pension Scheme (EPS)
Employees’ Deposit Linked Insurance (EDLI) scheme
EPFO plays a vital role in securing the financial future of millions of employees, helping them save for retirement, emergencies, and insurance protection under the EDLI scheme. It is one of the world’s largest social security organisations, covering over seven crore subscribers in India.
Ready to grow your savings in the stock market? Open a free Demat account today!
EPFO Interest Rate Retained at 8.25% for 2024-25
The EPFO Central Board has recommended keeping the EPFO interest rate at 8.25% for the financial year 2024-25. The decision was made during a meeting of the Employees’ Provident Fund Organisation (EPFO) on February 28, 2025. The interest rate will be credited to employees’ accounts once the Government of India gives its final approval.
Enhanced Life Insurance Benefit Under EDLI Scheme
Along with the EPF interest rate 2024-25, the EPFO Central Board has also introduced key changes to the Employees’ Deposit Linked Insurance (EDLI) scheme to provide better financial security for members and their families.
These include:
- A minimum life insurance benefit of ₹50,000 for EPF members who pass away before completing one year of continuous service.
- A gap of up to two months between jobs will now be considered “continuous service,” making more employees eligible for higher EDLI scheme benefits.
- Addressing previous concerns to ensure a smoother claim process for families.
These changes are expected to benefit over 5,000 families annually by providing increased compensation in case of an unfortunate event.
EPF Interest Rate Trends Over the Years
Over the years, the EPFO interest rate has seen multiple changes:
- 2023-24: Increased to 8.25% from 8.15% in 2022-23.
- 2021-22: Lowered to 8.1%, the lowest in 40 years.
- 2019-20: Reduced to 8.5%, the lowest in seven years.
- 2015-16: Slightly higher at 8.8%.
Conclusion
The EPF interest rate 2024-25 will be finalised after approval from the Finance Ministry.
For EPF members, this means your savings will continue earning an 8.25% interest rate for 2024-25. Additionally, the new life insurance benefit under the EDLI scheme ensures better financial protection!
Stay updated with EPFO notifications for any further changes in EPFO interest rates and benefits.
Source: MoneyControl
______________________________________________________________________________________
Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.