EPFO Pension: The Central Board of Trustees (CBT) of the Employees’ Provident Fund Organization (EPFO) met in New Delhi on Monday under the chairmanship of Union Labor Minister Mansukh Mandaviya.
At the meeting, the Labor Minister stated that increasing the minimum PF pension is under active consideration at the Cabinet level. Although the issue was not on the agenda, representatives of labor organizations demanded during the discussion that the minimum PF pension be increased by ₹1,000 per month.
Discussion on increasing the minimum pension from ₹1,000
According to a report in The Hindu, after the meeting, a member said, “The minister did not disagree and said the Cabinet was actively considering the proposal.” The issue of delays in disbursing higher pensions also came up in the meeting. Several members said that despite various High Court orders and Supreme Court directives, the current EPFO guidelines were not in accordance with them. They demanded that the old guidelines be withdrawn and the new system be implemented in accordance with the Supreme Court order. However, according to another member, the government’s response to this was “not positive.”
There have been changes in these rules
According to the Labor Ministry, the meeting simplified and liberalized the rules for partial EPF withdrawals. Until now, there were 13 complex provisions, which have been reduced to three categories: 1. Essential needs (illness, education, marriage), 2. Housing needs, and 3. Special circumstances.
Additionally, members will now be able to withdraw up to 100% of their total balance (including both employee and employer contributions). Under the new system, withdrawals for education can now be made up to 10 times. Withdrawals for marriage will now be allowed up to 5 times (previously, the limit for education and marriage combined was 3 times). The minimum service period for all partial withdrawals has been reduced to 12 months.
Launch of ‘Vishwas Yojana’
The CBT has decided to launch the VISHWAS scheme, which aims to reduce litigation related to penalties. The Labour Ministry said that a large number of cases are pending in courts due to penalties imposed on delayed payment of PF dues.
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