Friday, January 24, 2014

EPF pensioners to get minimum of Rs 1000 as pension

The finance ministry has approved a proposal for providing a minimum monthly pension of Rs 1,000 to workers in the organised sector, a move which would benefit 27 lakh pensioners immediately.
The ministry has also approved a proposal for raising the basic wage ceiling under the Employees Provident Fund Scheme to Rs 15,000 from existing Rs 6,500 per month.
At present, there are about 44 lakh pensioners. Of this 27 lakh, including 5 lakh widows, get less than Rs 1,000 a month.

“The finance ministry has approved the proposal for providing a minimum monthly pension of Rs 1,000 under the Employees Pension Scheme 1995 (EPS-95) run by EPFO. The ministry also cleared enhancing the wage ceiling to 15,000 under social security schemes run by the retirement fund body,” an official source said.
The government will provide additional subsidy of Rs 1,217 crore to ensure the minimum monthly pension of Rs 1,000 starting 2014-15. Pensioners are, therefore, expected to get benefit with effect from April 1 this year.
Labour minister Oscar Fernandes, however, is yet to decide on whether the move requires the Cabinet approval or not.
The labour ministry’s proposal on giving a minimum monthly pension of Rs 1,000 under the EPS-95, run by the Employees’ Provident Fund Organisation (EPFO), has been pending for a long time.     Earlier, the labour ministry had proposed that government should increase subsidy on EPS-95 from 1.16 per cent of basic wage to 1.79 per cent to ensure minimum pension.
However, it did not find favour with the finance ministry as this would have resulted in a permanent increase in subsidy.

2 comments :

hssgskgm said...

IT IS A GOOD DECISION BY FINANCE MINISTRY. THIS SMALL SIGH FOR OLD PENSIONERS. MY SUGGESTION IS MINIMUM MONTHLY PENSION SHOULD BE RS. 4000/- TO RS. 5000/-. THERE IS TOO UNCLAIMED MONEY IN PENDING. USE THIS FOR PENSION FUND. MY ANOTHER SUGGESTION IS TO INCREASE THE CEILING UPTO RS 25000/ FOR EPF DEDUCTION CONTRIBUTION FOR THE EMPLOYEES ALSO EMPLOYERS.
SO THE EMPLOYEES WHO RETIRING AFTER THE 30 TO 40 YEARS LONG SERVICE WILL GET A RESPECTABLE PENSION, AFTER THEIR RETIREMENT.
THANKS. KASHINATH MATALE, NAGPUR

B V Joshi said...

The revision was to be effective from 01.04.2014, but so far-still awaited. Can any one provide calculation sheet to get revised pension if a person now getting monthly pension of rs 864/?

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