The Employees’ Provident Fund Organisation (EPFO) has decided to maintain the interest rate on employees’ provident fund (EPF) deposits at 8.25% for the financial year 2024-25, keeping it unchanged from the previous year. This decision was finalized during a meeting of the Central Board of Trustees (CBT) held on Friday, according to reliable sources.
The decision ensures continuity for EPFO’s 7 crore members, who had witnessed a slight hike in the EPF interest rate from 8.15% in 2022-23 to 8.25% in 2023-24. With this move, the EPFO aims to sustain stable returns for provident fund holders despite prevailing economic conditions.
Approval Process and Implementation
Following the CBT’s decision, the proposed interest rate will be forwarded to the Ministry of Finance for clearance. Once approved, the revised rate will be credited into the accounts of EPFO members, offering them a reliable return on their retirement savings.
Progress on Pension on Higher Wages (PoHW) Applications
The EPFO has made significant strides in processing applications under the Pension on Higher Wages (PoHW) scheme. Official sources indicate that 70% of the applications have already been processed, with the organisation aiming for full completion by March 31, 2025.
The update was shared at the Executive Committee (EC) meeting of the Central Board of Trustees, EPF, chaired by Labour and Employment Secretary Sumita Dawra. The committee emphasized expediting pending cases, particularly for members who have already deposited the required amount, including those from major public sector undertakings (PSUs). The higher wages pension scheme is being implemented following directives from a Supreme Court judgment on the matter.
Simplification of Claim Processing and Partial Withdrawals
In an effort to enhance the ease of living for EPFO members, the organisation is working on simplifying claim processing. The EC reviewed progress on a plan that includes rationalizing validations for partial withdrawals, ensuring members have smoother access to their funds when needed.
A technical committee has recommended the simplification of validations in Form 31, which pertains to advance withdrawals, signaling a move towards more user-friendly processes.
Implementation of Centralised Pension Payment System (CPPS)
EPFO has successfully rolled out the Centralised Pension Payment System (CPPS) across all regional offices in January 2025. This new system enables pensioners to access their pensions from any bank, any branch, anywhere in India, ensuring seamless transactions.
According to official figures, 69.4 lakh pensioners received their pensions through CPPS in January 2025, achieving an impressive 99.9% success rate. This initiative aims to streamline pension disbursement, reduce errors, and improve accessibility for pensioners.
Transition to Aadhaar-Based Payment System (ABPS)
The Executive Committee stressed the importance of transitioning to the Aadhaar-Based Payment System (ABPS). This system will ensure pension payments are credited directly into Aadhaar-linked bank accounts, enhancing security, transparency, and efficiency.
The move is expected to minimize fraudulent transactions and provide pensioners with a more reliable and convenient payment system, aligning with the government’s broader push for digital financial inclusion.
By retaining the 8.25% EPF interest rate, the EPFO offers stability to millions of its members, reinforcing confidence in the retirement savings system. The progress in pension-related reforms, including PoHW application processing, simplification of withdrawals, and CPPS implementation, reflects EPFO’s commitment to improving service delivery. The upcoming transition to Aadhaar-linked payments is another step toward a more secure and efficient financial ecosystem for pensioners. With these measures, EPFO continues to uphold its mission of ensuring financial security and ease of access for its vast membership base.
