EPFO is planning a new pension program for the organized sector workers with basic wages of more than Rs 15,000 /month and are not mandatorily covered under its Employees' Pension Scheme 1995 (EPS-95).
Presently, all those employees in the organized sector whose basic wage (basic pay + dearness allowance) is up to Rs. 15,000 / month at the time of joining service are mandatorily covered under the EPS-95.
Demand a Higher Pension in Exchange of More Participation
According to some media reports, there has been a demand for more pensions based on increased participation among members of the Employees' Provident Fund Organization (EPFO).
As a result, a new pension product or scheme for those with a monthly basic salary of more than Rs 15,000 is being explored. This pension product may also be reviewed at the Central Board of Trustees (CBT) meeting on March 11 and 12 in Guwahati. During this time, the CBT's sub-committee on pension concerns, which was founded in November 2021, will also present its report.
Around 50 Lakh Workers of Organized Sector May Come Under EPS-95
In 2014, the EPFO changed the scheme to limit the monthly pensionable basic wage to Rs 15,000 per month.
The Rs 15,000 limit is only applicable at the time of entering the service. Due to pay revisions and price increases in the organized sector, it was raised from Rs 6,500 to Rs 7,500 with effect from September 1, 2014.
Later, a demand to raise the monthly basic pay ceiling to Rs 25,000 was made, and the proposal was discussed, but it was not adopted. According to industry estimates, raising the pensionable wage might bring 50 lakhs more workers in the organized sector under the EPS-95 umbrella.
Labor Minister Bandaru Dattatreya Replied Lok Sabha
In a written reply to the Lok Sabha in December 2016, former Labor Minister Bandaru Dattatreya stated that the Employees' Provident Fund Organization proposed to increase the salary limit for coverage under the Employees' Provident Fund and Miscellaneous Provisions Act, 1952. from 15,000 to 25,000. was placed, but no decision has been made.
EPFO had previously said in a circular dated January 13 that the pension amount should be deposited in EPS-95 pensioners' accounts on the last working day of each month.
