Imminent: Rs 1,000 minimum monthly pension
4 Jun 2014 3:37 AM IST
A minimum pension of Rs 1,000 a month under a scheme run by retirement fund body EPFO will be a reality this week, a development that will benefit 28 lakh pensioners, who get less than this amount at present.
As per a proposal, pensioners were to get the benefit with effect from 1 April this year. The government will have to provide an additional amount of around Rs 1,217 crore to ensure a minimum pension of Rs 1,000, starting 2014-15.
‘The previous government's decision to ensure a minimum monthly pension of Rs 1,000 to subscribers of Employees' Pension Scheme-95 (EPS-95) will be implemented this week as elections got over now. The Labour Ministry will notify it some time this week,’ an official source said.
According to the source, the ministry will also notify the decision of the Employees’ Provident Fund Organisation (EPFO) trustees to enhance the wage ceiling for covering organised sector workers under the ambit of EPFO to Rs 15,000 per month from existing Rs 6,500. Another decision to reduce administrative charges paid by employers to EPFO will also be notified.
The decisions could not be implemented earlier because the model code of conduct came into force after the general election dates were announced on 5 March.The decision to provide the entitlement under EPS-95 run by the Employees' Provident Fund Organisation was taken by the Union Cabinet in its meeting held on 28 February.
After the Cabinet approval, the decision to provide this entitlement was to be notified by the Labour Ministry, but model of code of conduct became a hindrance.This will immediately benefit about 28 lakh pensioners, including 5 lakh widows. In all, there are 44 lakh pensioners under the Employees’ Provident Fund Organisation schemeThe EPFO's apex decision making body, the Central Board of Trustees (CBT) met on 5 February and decided to amend the EPS-95 scheme for the purpose.
The decision of CBT to increase basic wage ceiling to Rs 15,000 per month is expected to bring in 50 lakh more employees under the EPFO’s ambit.
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.
CBT’s another decision was to reduce administrative charges from 1.10 per cent of basic wage to 0.85 per cent. Last Month, An empowered committee of EPFO has approved granting regular tax exemption to 20 private provident fund trusts, which would provide tax benefits for subscribers of these firms.
As per a proposal, pensioners were to get the benefit with effect from 1 April this year. The government will have to provide an additional amount of around Rs 1,217 crore to ensure a minimum pension of Rs 1,000, starting 2014-15.
‘The previous government's decision to ensure a minimum monthly pension of Rs 1,000 to subscribers of Employees' Pension Scheme-95 (EPS-95) will be implemented this week as elections got over now. The Labour Ministry will notify it some time this week,’ an official source said.
According to the source, the ministry will also notify the decision of the Employees’ Provident Fund Organisation (EPFO) trustees to enhance the wage ceiling for covering organised sector workers under the ambit of EPFO to Rs 15,000 per month from existing Rs 6,500. Another decision to reduce administrative charges paid by employers to EPFO will also be notified.
The decisions could not be implemented earlier because the model code of conduct came into force after the general election dates were announced on 5 March.The decision to provide the entitlement under EPS-95 run by the Employees' Provident Fund Organisation was taken by the Union Cabinet in its meeting held on 28 February.
After the Cabinet approval, the decision to provide this entitlement was to be notified by the Labour Ministry, but model of code of conduct became a hindrance.This will immediately benefit about 28 lakh pensioners, including 5 lakh widows. In all, there are 44 lakh pensioners under the Employees’ Provident Fund Organisation schemeThe EPFO's apex decision making body, the Central Board of Trustees (CBT) met on 5 February and decided to amend the EPS-95 scheme for the purpose.
The decision of CBT to increase basic wage ceiling to Rs 15,000 per month is expected to bring in 50 lakh more employees under the EPFO’s ambit.
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.
CBT’s another decision was to reduce administrative charges from 1.10 per cent of basic wage to 0.85 per cent. Last Month, An empowered committee of EPFO has approved granting regular tax exemption to 20 private provident fund trusts, which would provide tax benefits for subscribers of these firms.
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