If you are an EPFO member then this article is for you. The Employees’ Provident Fund Organization has decided to maintain the interest rate at 8.25 percent for Employees’ Provident Fund (EPF) deposits for the fiscal year 2024-25, benefiting over 70 million employees. Meanwhile, account holders are eagerly anticipating an increase in the minimum pension provided under the EPFO’s pension scheme.

 

For quite some time, employees in the private sector have been advocating for a rise in the minimum pension under the Employees’ Provident Fund Organization. Back in September 2014, the government set the minimum pension under the Employees’ Pension Scheme (EPS) at Rs 1,000, but pensioners’ groups are now calling for this amount to be raised to Rs 7,500 per month. Despite the 2014 announcement, the minimum pension has remained at Rs 1,000.

 

This request has been presented to the Finance Minister

 

1. Notably, on January 10, a group of EPS-95 pensioners met with Finance Minister Nirmala Sitharaman to discuss various demands, including a minimum monthly pension of Rs 7,500, an increase in dearness allowance (DA), and free medical care for both pensioners and their spouses.

 

2. During the meeting, the Finance Minister expressed that the demands would be considered with empathy. The committee highlighted that despite the government’s 2014 commitment to set the minimum pension at Rs 1,000, over 3.66 million pensioners still receive less than this amount.

 

3. The EPS-95 Aandolan Samiti, a collective of pensioners, mentioned that Union Labour Minister Mansukh Mandaviya also promised timely action regarding their requests, including the minimum pension under EPS-95.

 

Current Status of EPS 95

 

The EPF consists of two types of accounts: one for lump sum withdrawals upon retirement and another for monthly pension distributions. From the employer’s 12% contribution, 8.33% is directed to the EPS for pensions, while the remaining 3.67% goes to the EPF. Additionally, the government contributes 1.16% to this fund.

 

The interest rate for the Employees’ Provident Fund (EPF) has been set at 8.25% for the 2024-25 year, as confirmed in the recent meeting of the Central Board of Trustees on February 28.

 

Once the CBT makes this decision, the interest rate will be sent to the Finance Ministry for approval. After that, it will be credited to the accounts of over 70 million subscribers.

 

For the previous financial year, 2023-24, the EPFO had also set the interest rate at 8.25%, which is an increase from the 8.15% rate in 2022-23.