Recommendation of an interest rate of 8.25% on EPF for FY 2024-25 and some modifications to the EDLI Scheme

The Ministry of Labour & Employment, the Government of India, vide press note dated 28^th February 2025, has communicated regarding the recommendation made by the Central Board of Trustees (CBT) of the Employees’ Provident Fund Organisation to credit annual interest at the rate of 8.25% on EPF to the subscribers for the financial year 2024-25. The interest rate would be officially notified by the Government of India, following which the EPFO would credit the rate of interest to the subscribers’ accounts.

Furthermore, the CBT has also approved a few key modifications to the EDLI scheme to provide greater financial security and support to the families of EPF members.

The key enhancements under the revised scheme would be:

• Minimum benefit introduced for death within one year of service:

A minimum life insurance benefit of Rs. 50,000 will be provided in cases where an EPF member dies without completing one year of continuous service.

• Benefit for members who die while in service after a non-contributory period:

Previously, the EDLI benefits were being denied in such cases, considering these as deaths away from the service. Now, if a member passes away within six months of their last contribution received, the EDLI benefit will be admissible, provided the member’s name is not struck off from the rolls.

• Consideration of service continuity:

Earlier, a gap of even one or two days (such as weekends or holidays) between employment in two establishments led to the denial of minimum EDLI benefits of Rs 2.5 lakh and a maximum of Rs 7 lakh as the condition of continuous service of one year was not met. Under the new modifications, a gap of up to two months between the two spells of employment will now be considered as continuous service, ensuring eligibility for higher quantum EDLI benefits.

Note: Official notification regarding the above changes is awaited from the EPFO.