📢 *Important Updates from the 237th CBT Meeting of EPFO—Key Decisions Announced!* 🔔 The 237th meeting of the Central Board of Trustees (CBT), EPF, chaired by Dr. Mansukh Mandaviya, Union Minister for Labour & Employment, has brought significant updates impacting EPF members. Here’s a detailed breakdown: 🔹 *1. Interest Rate on EPF for FY 2024-25* ✅ The CBT has recommended an interest rate of 8.25% on Employees’ Provident Fund (EPF) deposits for the financial year 2024-25. ✅ The Government of India will officially notify the rate, after which EPFO will credit the interest to members’ accounts. ✅ This continues EPFO’s tradition of offering stable and tax-free returns, making EPF a highly attractive retirement savings option. 🔹 2. *Key Enhancements in EDLI (Employees' Deposit Linked Insurance) Scheme* To provide better financial security to EPF members’ families, the CBT approved major modifications in the EDLI scheme: 📌 *Minimum Insurance Benefit for Death Within One Year of Service* New Benefit: ₹50,000 minimum life insurance payout for cases where an EPF member dies without completing one year of continuous service. Expected Impact: This will benefit more than 5,000 families annually. 📌 Benefit for Members Who Die After a Non-Contributory Period *Previously,* EDLI benefits were denied if the member died after leaving employment, considering it a death away from service. *New Rule:* If a member passes away within 6 months of their last contribution, EDLI benefits will now be granted, provided their name was not removed from employer rolls. Expected Impact: Over 14,000 families per year will now receive financial support. 📌 Consideration of Service Continuity for EDLI Eligibility *Previously:* A gap of even a single day between two jobs resulted in EDLI benefits being denied due to non-continuous service. *New Rule:* A gap of up to 2 months between two jobs will now be considered as continuous service, ensuring eligibility for higher EDLI benefits (₹2.5 lakh minimum & ₹7 lakh maximum). Expected Impact: More than 1,000 additional families per year will benefit. 📌 *Overall Impact of EDLI Modifications:* More than 20,000 death cases annually will now receive higher benefits. These changes enhance social security for EPF members’ families, ensuring better financial protection and reduced hardships. 🔹 3. Pension on Higher Wages (PoHW) – Implementation Progress ✅ The EPFO is working on a mission mode to process applications related to the Supreme Court’s 04.11.2022 judgment on Pension on Higher Wages (PoHW). ✅ 72% of applications have already been processed, ensuring pensioners get their rightful benefits faster. 🔹 4. Centralized Pension Payment SystemCPPS)—Nationwidede Implementation ✅ EPFO has successfully implemented CPPS across all regional offices from January 2025. ✅ How CPPS Works: Pension payments are now disbursed through a Centralized Pension Disbursement Account (CPDA) at SBI’s New Delhi Branch. This eliminates delays caused by transfers between regional offices (ROs). ✅ Key Benefits: Pensioners no longer need to wait for regional office approvals. In January 2025, ₹1,710 crore was disbursed to 69.35 lakh pensioners via CPPS. 🔹 5. Rationalization of Damages for Late PF Payments – Reducing Litigation ✅ New Rule: Effective from June 2024, damages for late PF remittance have been reduced to 1% per month (earlier, penalties were much higher). ✅ Previously: 5% penalty for delays up to 2 months. 25% penalty for delays beyond 6 months. ✅ Why this matters? Helps reduce litigation related to penalty disputes. A statutory mechanism for automatic case abatement on damage payment at 1% per month is under discussion. 🔹 6. Approval of EPFO’s Budget for FY 2024-25 & FY 2025-26 ✅ The CBT has approved the Revised Estimates for 2024-25 and the Budget Estimates for 2025-26 for EPFO and its administered schemes. *📌 Key Takeaways for EPF Members:* ✅ 8.25% EPF interest rate to be credited after Govt. notification. ✅ Higher EDLI benefits, ensuring greater financial security for families. ✅ Faster PoHW processing, with 72% of applications already cleared. ✅ Nationwide CPPS implementation to eliminate pension payment delays. ✅ Lower damages for late PF deposits, reducing legal disputes. 🔹 These updates strengthen EPF’s position as a high-yield, secure retirement savings scheme for salaried employees. Stay informed for further updates! #epfo #cbtmeeting #epfinterest #edlibenefits #pohw #cpps #pension #labourlaws #financialsecurity