EPFO Pension Scheme: Employees’ Provident Fund Organization (EPFO) is contemplating to bring a new pension scheme. EPFO has given information about this on Sunday.
EPFO Pension Scheme: Employees’ Provident Fund Organization (EPFO) is contemplating to bring a new pension scheme. EPFO has given information about this on Sunday. Let us tell you that a plan is being made to bring this pension scheme for the people getting basic salary of more than Rs 15,000 in the organized sector. Apart from this, a new pension scheme is also being considered for the employees who are not compulsorily covered under the Employees’ Pension Scheme-1995 (EPS-95).
Who will get the benefit of this?
At present, those employees of the organized sector whose basic pay (basic pay and dearness allowance) is up to Rs 15,000 are compulsorily covered under EPS-95. A source told PTI-language, “There has been a demand for more pension on higher contribution among the members of EPFO. Thus a new pension scheme is being actively considered for those whose monthly basic salary is more than Rs 15,000.
Decision may be taken on 11th and 12th March
If sources are to be believed, the proposal on this new pension product may come in the meeting of the Central Board of Trustees (CBT), the apex decision-making body of EPFO, in Guwahati on March 11 and 12. During the meeting, a sub-committee on pension related issues constituted by the CBT in November, 2021 will also submit its report.
Get less pension
The source said that there are EPFO subscribers who are getting a monthly basic salary of more than Rs 15,000, but they are able to contribute under EPS-95 at a lower rate of 8.33 per cent. In this way they get less pension.
Was amended in 2014
The EPFO had amended the scheme in 2014 to limit the monthly pensionable basic pay to Rs 15,000. The limit of Rs 15,000 is applicable only at the time of joining the service. It was revised upwards from Rs 6,500 with effect from September 1, 2014, due to wage revision and price hike in the organized sector.
There was a demand to increase the basic salary limit to 25000
After this, there was a demand to increase the monthly basic salary limit to Rs 25,000 and it was discussed, but the proposal could not be approved. According to industry estimates, 50 lakh more workers in the organized sector could come under the ambit of EPS-95 with the increase in pensionable wages.
Know what the former labor minister said
Former Labor Minister Bandaru Dattatreya said in a written reply in Lok Sabha in December 2016, “Proposal to increase the wage ceiling for ‘coverage’ from Rs 15,000 per month to Rs 25,000 per month under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952.” EPFO had introduced, but no decision was taken on it.
Those with basic salary less than 15000 will benefit
According to the source, there is a need for a new pension product for those who are either forced to contribute less or who could not subscribe to the scheme, as their monthly basic salary at the time of joining service is less than Rs 15,000. was excessive.
