Retirement fund body EPFO has decided to retain the interest rate on employees’ provident fund deposits at 8.25 per cent for 2024-25 – the same as the previous year.
The decision was taken by the EPFO’s Central Board of Trustees at a meeting held on Friday, according to reliable sources.
The Employees’ Provident Fund Organisation had increased the interest rate on EPF for its 7 crore members to 8.25 per cent for 2023-24, from 8.15 per cent in 2022-23.
The proposal will now be sent to the Ministry of Finance for clearance after which the interest rate on EPF for 2024-25 will be credited into the accounts of the EPFO members.
Meanwhile, the EPFO has completed the processing of 70 per cent of the applications received under Pension on Higher Wages (PoHW) and aims to complete the processing of all applications by March 31, 2025, according to an official statement.
This information was provided by the EPFO at the Executive Committee (EC) of the Central Board of Trustees, EPF, chaired by Labour and Employment Secretary Sumita Dawra.
The committee instructed the EPFO to expedite the cases of members who have already deposited the required amount, including for the large PSUs, according to the statement. The higher wages pension scheme is being implemented in accordance with the Supreme Court judgment on the issue.
With the goal of providing ease of living for its members, the EPFO is also working on a plan for simplification of claim processing, including rationalisation of validations for partial withdrawals. The EC was also provided an update on the progress. A technical committee has recommended simplification of validations in Form 31 for advance withdrawals, the statement said.
The executive committee was further informed that the Centralised Pension Payment System (CPPS) has been implemented across all regional offices in January 2025. The new system enables pensioners to access their pensions seamlessly from any bank, any branch, anywhere in the country. In January 2025, 69.4 lakh pensioners received their pensions through CPPS, achieving a 99.9 per cent success rate.
The EC emphasised the need to transition to the Aadhaar-Based Payment System (ABPS) in a time-bound manner, ensuring that pension payments are credited directly into Aadhaar-linked bank accounts for a more secure and efficient system.
(Inputs from IANS)
