EFFO approves a proposal to provide a monthly pension of minimum Rs. 1,000
Posted on: 28/Feb/2014 11:16:16 AM
Employees Provident Fund Organization (EPFO) approved a proposal to provide a monthly pension of minimum Rs. 1,000, a decision that will immediately benefit about its 28 lakh pensioners.
The Central Board of Trustees (CBT), the apex decision-making body of EPFO, also decided to raise the monthly wage ceiling to Rs. 15,000 from Rs. 6,500 by amending the Employee Provident Fund scheme, 1952, so that more workers can be brought under its various social security programmes.
The board has decided to approve the proposed amendments in the schemes to ensure that Rs. 1,000 minimum monthly pension under EPS-95 and also increased the wage ceiling to Rs. 15,000 per month.
At present, workers getting basic wages, including basic pay and dearness allowance, of up to Rs. 6,500 are mandatorily covered under the ambit of Employees` Provident Fund Organisation (EPFO).
According an EPFO official, the Labour Ministry will soon move proposal before the Union Cabinet for its approval for the Rs. 1,000 minimum monthly pension.
The pensionable salary will be calculated on the basis of average salary of the last 60 months instead of 12 months as provided in the EPS-95.
The Employee Provident Fund Organisation (EPFO) runs social security programmes Employees Provident Fund Scheme 1952, Employees Pension Scheme 1995 and Employees Deposit Linked Insurance Scheme 1976.
