EPFO Announces New Interest Rate: PF Savings to Grow Steadily Unlike Stock Market
New Delhi (The Uttam Hindu)- Retirement fund body EPFO has decided to retain the interest rate on Employees Provident Fund deposits for 2024-25 at 8.25 per cent, same as last year. According to sources, this decision was taken by the Central Board of Trustees of EPFO in a meeting held on Friday.
The Employees' Provident Fund Organisation had increased the interest rate on EPF for 2023-24 from 8.15 per cent in 2022-23 to 8.25 per cent for its 7 crore members. The proposal will now be sent to the Finance Ministry for approval, after which the interest rate on EPF for 2024-25 will be credited to the accounts of EPFO members. Meanwhile, according to an official statement, 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.
This information was given by the EPFO in the Executive Committee (EC) of the Central Board of Trustees, EPF, headed by Labor and Employment Secretary Sumita Dawra. According to the statement, the committee directed the EPFO to expedite the cases of those members who have already deposited the required amount, including large PSUs. The High Wage Pension Scheme is being implemented in accordance with the Supreme Court's decision on the issue. The Employees' Provident Fund Organization (EPFO) is working on a plan to simplify the claim process with an aim to make the life of its members easier, including rationalization of verification for partial withdrawal. The EC was also given an update on the progress. A technical committee has recommended simplifying the verification in Form 31 for advance withdrawal. The executive committee was also informed that the Centralized Pension Payment System (CPPS) has been implemented in all regional offices in January 2025. The new system enables pensioners to receive their pension from any bank, any branch anywhere in the country. In January 2025, 69.4 lakh pensioners received their pension through CPPS, achieving a 99.9 per cent success rate. The EC emphasized the need to transition to Aadhaar-based Payment System (ABPS) in a timely manner, to ensure that pension payments are credited directly into Aadhaar-linked bank accounts for a more secure and efficient system.
