Government Sets 8.25% Interest Rate for Provident Fund in FY25

Quick Summary:

• Interest Rate approval: The Union Government approved an 8.25% interest rate on Employees’ Provident Fund (EPF) accumulations for FY25, following the recommendation made by the Central Board of Trustees (CBT).
• CBT Meeting: The decision was discussed at the 237th CBT meeting chaired by Union minister for Labor & Employment Dr. Mansukh Mandaviya.
• Tax Benefits: EPF investments remain attractive due to high returns and tax-free interest earned within specified limits.
• EDLI Scheme Updates:

– Enhanced benefits provide financial security to families of EPF members.
– Minimum insurance benefit set at rs 50,000 in cases of death without completing one year of service.- Amendments ensure EDLI benefits for deaths occurring within six months after last contributions, provided eligibility criteria are met.
– Two-month gaps between employment spells will count as continuous service under revised rules.!Read More