Good news coming for employees? Modi government mulls increasing minimum pension
In what comes as a major good news for employees affiliated to Employees' Provident Fund (EPF), the Modi government is mulling an increase in minimum pension. Labour Minister Santosh Kumar Gangwar told the Lok Sabha on Monday that if the pension is doubled to Rs 2000, it will cost the government Rs 4,671 crore and if hiked to Rs 3000, it should cost Rs 11696 crore.
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Good news for employees! EPF interest rate hike to 8.65 per cent approved by Finance MinistryIn what comes as a major good news for employees affiliated to Employees' Provident Fund (EPF), the Modi government is mulling an increase in minimum pension. Labour Minister Santosh Kumar Gangwar told the Lok Sabha on Monday that if the pension is doubled to Rs 2000, it will cost the government Rs 4,671 crore and if hiked to Rs 3000, it should cost Rs 11696 crore. The big news that Gangwar revealed is that a consultation process about the same has been initiated with Employees' Provident Fund Organisation (EPFO) and Central Board of Trustees
His comments came amid demand by some members to increase the minimum pension from the existing Rs 1000. He noted that a committee had earlier recommended increase of the minimum monthly member pension. It was the Modi government which had hiked the pension to Rs 1000 in 2014, he said.
As of now, about 60 lakh pensioners are registered under the Employees' Pension Scheme (EPS), which is managed by the Employees' Provident Fund Organisation. And, about 40 lakh are getting less than Rs 1,500 per month. If a decision regarding the same is taken, it will benefit all these employees.
Earlier, it was reported that Central trade unions have been demanding a minimum monthly pension of Rs 3,000, as recommended by the Koshiyari Committee back in 2013. On the other hand, a pensioners' body, the EPS-95 National Agitation Committee, has been pushing for a steeper hike to Rs 7,500 per month. Even the move to increase the minimum pension will benefit millions of employees, it will dent government's kitty which currently spends about Rs 9,000 crore per annum on pensions under EPS.
In 2014, The Modi government had given nod for a monthly minimum pension of Rs 1,000 for a year under the EPS. The step was take soon after the government came to power. It extended the amount in perpetuity the following year. The laws make it EPF contribution compulsory for employees earning a monthly salary up to Rs 15,000 in companies and establishments with 20 or more workers on its roll.
