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Hr NewsStatutory Compliance

Bonanza likely for Employees’ Pension Scheme pensioners

Source | https://economictimes.indiatimes.com : By Yogima Sharma

NEW DELHI: The government may soon double minimum monthly payments under the Employees’ Pension Scheme (EPS) of the Employees’ Provident Fund Organisation (EPFO) to Rs 2,000 to strengthen the social security net for pensioners, a senior government official told ET.

Such a move, about a year ahead of the next general election, would benefit at least 4 million people and cost the Centre a minimum Rs 3,000 crore annually if implemented, the person said.

The Cabinet had in 2014 approved a minimum monthly pension of Rs 1,000 for a year under EPS and then extended it in perpetuity the following year. The differential cost of Rs 813 crore per year to pay the minimum pension is borne by the Centre and this could more than double if the amount is increased twofold for all subscribers currently getting less than Rs 2,000 a month, said the official cited above.

The labour ministry has asked the EPFO to calculate the cost as well as the number of beneficiaries if approved a minimum monthly pension of Rs 1,000 for a year under EPS and then extended it in perpetuity the following year. The differential cost of Rs 813 crore per year to pay the minimum pension is borne by the Centre and this could more than double if the amount is increased twofold for all subscribers currently getting less than Rs 2,000 a month, said the official cited above.

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These are the Employees’ Provident Fund Scheme 1952 or EPF and the Employees’ Pension Scheme 1995 or EPS (also called EPS-95).

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