The Central Board of Trustees (CBT) of the Employees’ Provident Fund Organisation (EPFO) is set to meet on Friday to discuss key financial and policy matters, including:
- Determining the interest rate for PF deposits for 2025-26
- Reviewing the implementation of the Supreme Court order on higher PF pensions
- Proposing major changes to the Employees Deposit Linked Insurance Scheme (EDLI)
Potential Increase in PF Interest Rate
The CBT, which includes representatives from employees, employers, and the central and state governments, will recommend the interest rate for 2025-26.
- Currently, the interest rate is 8.25%.
- Workers’ representatives have been pushing for an increase, citing inflation and economic distress.
Higher Pension Implementation & Clarity
Another critical issue is the implementation of the Supreme Court’s November 2022 order on higher pensions.
- The EPFO has decided to compute higher pensions on a pro-rata basis.
- Some workers’ representatives have raised concerns about this method and are seeking clarifications.
- The EPFO maintains that pro-rata calculations are fair, treating all pensioners—those under wage ceilings and those with higher wages—equally.
- The Labour Ministry has supported this computation.
Additionally, the EPFO reported that 70% of higher pension applications have been processed and aims to complete the remaining cases by March 31, 2025.
Proposed Changes to Employee Insurance (EDLI Scheme)
The EPFO is also considering key changes to the Employees Deposit Linked Insurance Scheme (EDLI) to provide better support to workers’ families.
- Currently, no benefits are provided if a worker dies within a month of joining the scheme.
- The proposal suggests a minimum ₹50,000 compensation for the family in such cases.
- If a death occurs within six months, the compensation amount will also be increased.
These proposals, if approved, could bring significant financial relief and security to EPF subscribers and their families.