The minimum monthly pension of Rs 1,000 under EPS-95 scheme, run by the Employees’ Provident Fund Organisation (EPFO), is set to be notified, which will immediately benefit 28 lakh pensioners who currently get less than this amount.
While announcing that the government is notifying the minimum pension under the Employees’ Pension Scheme-1995 (EPS-95), Finance Minister Arun Jaitley also stated that the wage ceiling that covers organised sector workers under schemes run by EPFO has been hiked to Rs 15,000 per month from existing Rs 6,500.
“The government is fully committed to the social security and welfare of employees serving in the organised sector. The government is notifying minimum pension of Rs 1,000 per month to all subscriber members of EPS-95 scheme and has made an initial provision of Rs 250 crore in the current financial year to meet the expenditure,” Jaitley said.
He said, “Further, increase in mandatory wage ceiling of subscription to EPS-95 from Rs 6,500 to Rs 15,000 has been made and a provision of Rs 250 crore has been provided in the Budget.”
At present, workers whose basic wage at the time of joining is up to Rs 6,500 per month, including basic pay and dearness allowance, can be subscribers of the EPFO schemes. According to the EPFO’s estimates, the raising of wage ceiling to Rs 15,000 per month is expected to bring 50 lakh more workers under the ambit of social security schemes run by it.
The decision to provide this entitlement under EPS-95 was taken by the Union Cabinet in its meeting held on February 28 but it could not be implemented due to the commencement of the election process for the Lok Sabha.