Union Minister for Labour & Employment Mansukh Mandaviya chaired the 239th meeting of the Central Board of Trustees (CBT) of the Employees’ Provident Fund Organisation (EPFO) in New Delhi.
After detailed discussions, the board recommended an 8.25% annual interest rate on Employees’ Provident Fund (EPF) deposits for the financial year 2025-26. The interest will be officially notified by the Government of India, after which it will be credited to EPF members’ accounts.
The meeting also reviewed several reforms and policy initiatives aimed at strengthening social security, improving compliance, and enhancing service delivery for crores of EPF subscribers.
EPF Interest Rate for FY 2025-26
The Employees’ Provident Fund Organisation has recommended maintaining the 8.25% interest rate, ensuring stable and competitive returns for workers’ retirement savings.
Key highlights:
- Interest rate recommended: 8.25% for FY 2025-26
- Final notification will be issued by the Government of India
- Interest will then be credited to subscribers’ EPF accounts
Despite global financial uncertainties, EPFO has continued to deliver returns above 8% for several years, mainly due to strong performance of investments such as Exchange Traded Funds (ETFs) and other instruments.
Major Reforms and Decisions Taken in the Meeting
1. Amnesty Scheme for Exempted Establishments
The board approved a one-time Amnesty Scheme to address compliance issues among income-tax-recognized trusts that are yet to obtain exemption under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952.
Key features:
- Six-month window for compliance
- Waiver of damages, interest, and penalties in eligible cases
- Protection of workers’ benefits
- Expected to resolve over 100 litigation cases
2. Simplified SOP for EPF Exemptions
The board approved a new simplified Standard Operating Procedure (SOP) that merges four earlier SOPs and the exemption manual into a single framework.
Benefits include:
- Fully digital process
- Faster processing of exemption requests
- Improved transparency and audit mechanisms
- Reduced compliance burden for establishments
3. Alignment with the Code on Social Security, 2020
To ensure a smooth transition to the new labour framework, the board approved notification of updated schemes under the Code on Social Security, 2020.
The following schemes will replace existing ones:
- EPF Scheme, 2026
- EPS Scheme, 2026
- EDLI Scheme, 2026
These schemes will provide a stronger legal foundation for provident fund, pension, and insurance benefits.
4. Approval of EPFO Annual Report 2024-25
The board approved the Annual Report of EPFO for 2024-25, which will now be presented in Parliament.
Key performance highlights:
- Total contributions: ₹3.35 lakh crore
- New establishments covered: 2.86 lakh
- New members enrolled: 1.22 crore
- Pensioners served: 81.48 lakh
- Claims settled: Over 6 crore
- Grievances resolved: 17.33 lakh
5. Key Reforms Introduced by EPFO
During FY 2024-25, EPFO implemented several important reforms:
- Centralised Pension Payment System (CPPS) rollout
- Digital Life Certificate submission through Facial Authentication Technology
- Amendments in the Employees’ Pension Scheme 1995
- Enhanced benefits under the Employees’ Deposit Linked Insurance Scheme
Under EDLI, insurance coverage now ranges from ₹2.5 lakh to ₹7 lakh.
EPFO also received seven International Social Security Association (ISSA) Good Practice Awards for Asia-Pacific 2024.
International Social Security Agreement
India has signed 22 Social Security Agreements with various countries. Recently, a Double Contributions Convention (DCC) agreement was negotiated with the United Kingdom as part of the Comprehensive Economic and Trade Agreement.
The agreement will reduce the burden of double social security contributions for workers and employers, improving the global competitiveness of Indian professionals.