EPFO, HQ in Delhi.
| Photo Credit: The Hindu
A meeting of the Central Board of Trustees (CBT) of the Employees’ Provident Fund Organisation (EPFO), scheduled here on Friday (February 28, 2025), will discuss the interest rate to be recommended for PF deposits for the coming financial year and review the implementation of the Supreme Court order on higher PF pension.
The meeting of the CBT, the tripartite body consisting of representatives from employees, employers, and the Union and State governments, will also deliberate a proposal to make significant changes to the Employees Deposit Linked Insurance Scheme (EDLI).
A source in the panel said the CBT will recommend the interest rate for PF deposits for 2025-26. At present, the interest rate is 8.25%. The Centre has been claiming that it provides the best rate of interest for the workers’ money. Workers’ representatives in the CBT have been demanding an increase in the rate considering the inflation and general economic distress. The Union Finance Ministry takes a decision on the rate based on the recommendation of the CBT.
Another major issue before the CBT is the implementation of the Supreme Court’s November 2022 order on higher pension. The workers’ representatives have been seeking clarifications on the EPFO’s decision to compute the higher pension on a pro-rata basis. The EPFO, in a recent circular to its regional offices, had maintained that the pro-rata calculation of pension is provided in Para 12 of the Employees Pension Scheme and is equitable, “treating both categories of pensioners i.e. pensioners under wage ceiling and those with higher wages on an equal footing”.
The circular added that the Supreme Court had also not found the provision ultra-virés. “Accordingly, Labour Ministry has agreed with the computation of pension on pro-rata basis for the pension on higher wages cases,” the EPFO said.
Similarly, in the case of exempted establishments, the EPFO had mandated that the higher pension rules should be in consonance with the directions of the Supreme Court. On Wednesday, the EPFO had informed the executive committee of the CBT that 70% of the higher pension applications had been processed. “EPFO aims to complete the processing of all applications by March 31, 2025,” the Labour Ministry had said in a statement, adding that the executive committee instructed the EPFO to expedite the cases of members who have already deposited the required amount, including for the large PSUs.
The trade unions and pensioners’ bodies had raised concerns over both issues. They had argued that computing higher pension on pro-rata basis was against the Supreme Court order. They had also demanded strict direction from the EPFO to the exempted trusts on higher pensions.
The EPFO is learnt to have proposed changes to the EDLI scheme. At present, there is no benefit if a worker dies within a month of joining the scheme.
The proposal is to provide at least ₹50,000 to the worker’s family in the event of death. If any death occurs within six months too, the compensation has to be increased, according to the new proposal. “The one-year threshold has been relaxed,” a source said.
Published – February 27, 2025 10:22 pm IST