Employees' Provident Fund Central Board of Trustees (CBT)

Why in news?

Dr. Mansukh Mandaviya chaired the 237th meeting of the Central Board of Trustees (CBT) of the Employees' Provident Fund.

Key Points:

• For the financial year 2024-25, the CBT has recommended crediting an annual interest rate of 8.25% on EPF accumulations to the members' accounts.
• The EPFO ​​will credit the interest rate to the subscribers' accounts after the interest rate is officially notified by the Central Government.

Central Board of Trustees of Employees' Provident Fund (CBT, EPF):

• It is the decision making body of the Employees' Provident Fund Organisation (EPFO).
• It functions under the Ministry of Labour and Employment, Government of India.
• It was established on 4 March 1952.

Employees' Provident Fund (EPF):

• It is a retirement savings scheme for organized sector employees in India.
• It is operated by the Employees' Provident Fund Organization.
• The scheme operates under the Employees' Provident Fund and Miscellaneous Provisions Act, 1952.
• Key Features:
  • EPF is a compulsory savings scheme, in which both employees and employers contribute.
  • Provides financial security during the job and after retirement.
  • The interest rate is fixed by the government, and the EPFO ​​​​declares it every year.
  • Partial withdrawal facility is available if required.