EPFO CBT Meeting: PF Interest Rate, Higher Pension and EDLI Changes
Why in the news
EPFO’s Central Board of Trustees (CBT) meets to decide the 2025-26 PF interest rate and to review higher pension and insurance matters.
Key facts
- Current PF interest rate: 8.25%; workers seek an increase citing inflation.
- The CBT’s recommendation goes to the Ministry of Finance for approval.
- Final decision depends on financial feasibility.
Higher pension
- A November 2022 Supreme Court verdict let eligible employees seek pension based on actual salary instead of the wage ceiling.
- EPFO objects to the pro rata calculation, citing Para 12 of the EPS, which balances pensioners under the ceiling and those on higher wages; the Court did not call it ultra vires.
- About 70% of applications are processed; target to finish by 31 March 2025.
- The CBT executive asked EPFO to speed up pending cases of major PSUs.
| EDLI scheme | Position |
|---|---|
| Now | No benefit if death occurs within one month of joining |
| Proposed | At least ₹50,000 to the family; more for death within six months of joining |
Aim: keep families financially secure after an early death of a worker.
Exam angle
- Body deciding PF rate: CBT of EPFO; approval: Ministry of Finance.
- Terms: EPS, EDLI, pro rata, ultra vires.