EPF Interest Rate Remains Unchanged at 8.25% in CBT Meeting. Amendments to the PF-linked Insurance Scheme Approved. The meeting was chaired by Labour Minister Mansukh Mandaviya.
New Regulations: A significant decision was taken at the Central Board of Trustees (CBT) meeting of the Employees' Provident Fund Organisation (EPFO). The interest rate on EPF deposits remains unchanged. Participants in EPFO will continue to receive an 8.25% interest rate for the 2025-26 fiscal year.
At the CBT meeting chaired by Union Minister of Labour and Employment, Dr. Mansukh Mandaviya, on Friday, an 8.25% annual interest rate on EPF deposits was recommended. This interest rate will be credited to the participants' accounts after notification by the central government.
Highest Interest on PF
Prior to the meeting, there were speculations about a possible reduction in the interest rate, but this did not happen. Last year also, PF offered an 8.25% interest rate. Currently, PF offers the highest interest rate compared to other savings schemes. In 2022, the government reduced the PF interest rate from 8.5% to 8.1%, but in 2024, it was increased to 8.25%.
Higher Returns Than Other Savings Plans
Currently, the interest rates for various savings schemes are as follows:
Public Provident Fund (PPF): 7.1%
Post Office 5-year Term Deposit: 7.5%
Kisan Vikas Patra: 7.5%
Three-year Term Deposit: 7.1%
Senior Citizens Savings Scheme: 8.2%
Sukanya Samriddhi Yojana: 8.2%
National Savings Certificate: 7.7%
Post Office Savings Account: 4%
According to this information, the 8.25% interest offered on EPF is higher than all other schemes.
Significant Amendments to EDLI Scheme
The CBT meeting introduced several crucial changes to the Employees' Deposit Linked Insurance (EDLI) scheme.
Benefits in case of death before one year of service: If an EPF member dies before completing one year of regular service, the nominee will receive a life insurance benefit of ₹50,000. This will benefit approximately 5,000 families.
Benefits also in case of death within six months
If an employee dies within six months of their last PF contribution, they will also receive EDLI benefits, provided their name has not been removed from the company's rolls. This change will benefit over 14,000 families annually.
Two-month gap between two jobs acceptable
If an employee has a two-month gap between two jobs, it will be considered continuous employment. Previously, in such cases, EDLI benefits (minimum ₹2.5 lakh and maximum ₹7 lakh) were not provided due to the non-fulfillment of the one-year continuous service condition. This change will benefit 1,000 families annually.
With these amendments, approximately 20,000 families will benefit from this scheme annually.
What is the EDLI Scheme?
The Employees' Deposit Linked Insurance (EDLI) is an automatic scheme linked to EPF, providing life insurance coverage to EPF account holders. Under this, insurance benefits are paid to the nominee upon the death of the EPF account holder.
This government decision will enhance the financial security of EPF participants and their families, providing them with greater benefits than before.
