Context:

• The 237th meeting of the Central Board of Trustees (CBT) of the Employees' Provident Fund Organization (EPFO) was held in New Delhi under the chairmanship of Union Minister for Labour & Employment and Youth Affairs & Sports, Dr. Mansukh Mandaviya.
• The meeting was attended by the Vice-Chairperson and Minister of State for Labour & Employment and Micro, Small & Medium Enterprises, Shobha Karandlaje, Co-Vice Chairperson and Secretary, Ministry of Labour & Employment, Sumita Dawra, and Member Secretary, Central PF Commissioner, Ramesh Krishnamurthy.

Key Decisions and Announcements:

Interest Rate on EPF:

• The CBT has recommended an annual interest rate of 8.25% on Employees' Provident Fund (EPF) deposits for the financial year 2024-25, which remains unchanged from the previous year.
• This rate will be credited to EPFO members' accounts once it is notified by the Central Government.

Major Decisions Taken by the Board:

Enhancement of Insurance Benefits under EDLI Scheme:

• After actuarial evaluation of the Employees’ Deposit Linked Insurance (EDLI) scheme, the board has approved major amendments to provide greater financial security and assistance to the families of members.
• These changes will help resolve key grievances in this category and ensure a more inclusive approach for claimants.

Key Benefits of the Revised Scheme:

1. Minimum Life Insurance: In case of death within less than a year of service, a minimum benefit of ₹50,000 will now be provided, assisting over 5,000 cases annually.

2. Benefit in Case of Death During Non-Contributory Period: If death occurs within six months of the last contribution, EDLI benefits will be granted, benefiting over 14,000 cases annually.

3. Service Continuity Relief: A gap of up to two months between two jobs will now be considered continuous service, benefiting over 1,000 cases annually.

4. Overall Impact: These reforms will enhance benefits under EDLI for over 20,000 cases annually, ensuring better financial security for the families of EPF members.

Supreme Court’s Pension Judgment and EPFO’s Actions:

• 1. Implementation of POHW Decision: As per the Supreme Court judgment dated 04.11.2022, EPFO has completed action on 72% of applications.
• 2. Centralized Pension Payment System (CPPS): To be implemented in all regional offices from January 2025, benefiting 69.35 lakh pensioners with ₹1710 crore disbursed and reduced grievances.
• 3. Reduction in Litigation: The penalty on outstanding PF dues has been reduced to 1% per month, aiming to reduce disputes.
• 4. EPFO Budget Approval: Revised estimates for 2024-25 and budget for 2025-26 have been approved.

Employees’ Provident Fund Organization (EPFO):

• A statutory body under the Ministry of Labour & Employment, Government of India.
• Primary objective: Providing social security to employees in the organized sector.
• Established: 15 November 1951
• Act: Formed under the Employees' Provident Fund & Miscellaneous Provisions Act, 1952 (EPF & MP Act, 1952)
• Administration: Under the Ministry of Labour & Employment
• Management: Managed by the Central Board of Trustees (CBT), which includes representatives from Central and State Governments, employers, and employees.

Employees’ Provident Fund (EPF):

• Applicable to: Employees in the organized sector aged 18 to 54 years.
• Eligibility: Only for employees with a maximum monthly salary of ₹15,000.

Contributions:

For Establishments with Less than 20 Employees:

• Employer’s Contribution: 10% (Basic Salary + Dearness Allowance)
• Employee’s Contribution: 10% (Deducted from Salary)

For Establishments with 20 or More Employees:

• Employer’s Contribution: 12% (Basic Salary + Dearness Allowance)
• Employee’s Contribution: 12% (Deducted from Salary)

Interest and Withdrawals:

• EPFO provides interest on the contributed amounts.
• On retirement, employees receive a lump sum amount and pension benefits.
• Partial withdrawals are allowed in specific cases such as house purchase, medical emergencies, marriage, education, etc.