EPF Interest Rate

Context

The Employees' Provident Fund Organization (EPFO) has decided to retain the interest rate on employees’ provident fund deposits at 8.25% for 2024-25, the same as the previous year. This decision was made by the EPFO Central Board of Trustees.

About Employees' Provident Fund (EPF)

The Employees' Provident Fund (EPF) is a statutory benefit payable to employees working in India.
The Employees' Provident Funds and Miscellaneous Provisions Act, 1952 governs the EPF and is applicable across India, except Jammu and Kashmir.
EPF Objective: It encourages employees to save for retirement.

Fact Box:

EPFO (Employees’ Provident Fund Organization)

EPFO is a statutory body established by the Government of India in 1952.
It is the country’s largest social security organization that administers the Provident Fund (PF), Pension Scheme, and Deposit Linked Insurance Scheme.
EPFO operates under the purview of the Ministry of Labour and Employment.
EPFO administers three main schemes for employees:
- Employees’ Provident Funds Scheme, 1952 (EPF)
- Employees’ Pension Scheme, 1995 (EPS)
- Employees’ Deposit Linked Insurance Scheme, 1976 (EDLI)
Central Board of Trustees (CBT): The CBT) governs the administration of the schemes under the Act.
Structure: The Board is a tri-partite body, consisting of representatives from:
- The Government (Central and State)
- Employers
- Employees
Apex Body: The Central Board of Trustees serves as EPFO’s apex decision-making body.
The Ministry of Labour and Employment chairs the Central Board of Trustees.
EPFO’s Role and Schemes: EPFO assists the Central Board of Trustees (CBT) in managing the provident fund, pension, and insurance schemes for the registered establishments in India.
Coverage: It includes employees of registered establishments and international workers who are covered by the Act.
Bilateral Social Security Agreements: EPFO is the nodal agency for implementing Bilateral Social Security Agreements with other countries.