Trustees of Retirement fund body EPFO on Wednesday decided to amend the scheme to provide a minimum monthly pension of Rs. 1,000, which will immediately benefit about its 28 lakh pensioners.
The Central Board of Trustees (CBT), the apex decision making body of EPFO, also decided on amending EPF scheme 1952 to raise the monthly wage ceiling to Rs. 15,000 to cover more workers under its various social security programmes like Employees’ Provident Fund (EPF)Scheme 1952, Employees’ Pension Scheme 1995 (EPS-95) and Employees’ Deposit Linked Insurance (EDLI) Scheme 1976.
At present, workers getting basic wages, including basic pay and DA, of up to Rs. 6,500 are covered under the ambit of Employees’ Provident Fund Organisation (EPFO).
According to EPFO, the Finance Ministry has already approved the Labour Ministry’s proposals for entitlement of minimum monthly pension of Rs. 1,000 and enhancing wage ceiling to Rs. 15,000 per month.
The government would have to provide an additional amount of Rs. 1,217 crore to ensure the minimum pension of Rs. 1,000 starting 2014-15. Pensioners are, therefore, expected to get benefit with effect from April 1 this year.
The Central Board of Trustees (CBT), the apex decision making body of EPFO, had earlier approved the two proposals, following which the Labour Ministry pursued it with the Finance Ministry.
The move to ensure Rs 1,000 minimum pension under EPS-95 will immediately benefit about 28 lakh pensioners including five lakh widows. There are about 44 Lakh pensioners.
The other proposal for raising wage ceiling under EPF Scheme from Rs. 6,500 to Rs. 15,000 is expected to bring in 50 lakh more workers under the ambit of schemes run by EPFO.
At present, under EPS-95, the EPFO subscribers cease to be a member of the pension scheme after attaining the age of 58 years and can apply for fixation of his/her pension thereafter.
However, there is no age bar for contributing to the EPF and EDLI schemes run by the EPFO.