EPFO considering a new pension scheme for formal employees to get more than ₹15,000 basic salary

Author: Nishu February 20, 2022

EPFO considering a new pension scheme for formal employees to get more than ₹15,000 basic salary


The EPFO ​​had amended the scheme in 2014 to limit the monthly pensionable basic pay to Rs 15,000.

Retirement fund body EPFO ​​is mulling to introduce a new pension product for organized sector workers who are getting basic salary of more than ₹ 15,000 per month and which are mandated under its Employees’ Pension Scheme 1995 (EPS-95). are not fully covered.

At present, all those employees in the organized sector whose basic pay (Basic Pay and Dearness Allowance) is up to ₹15,000 per month at the time of joining the service are compulsorily covered under EPS-95.

“There has been a demand for higher pension on higher contribution among the members of the Employees’ Provident Fund Organization (EPFO). Thus, it is being actively considered to bring a new pension product or scheme for those whose monthly The basic salary is more than Rs 15,000,” a source close to the development told PTI.

According to the source, the proposal on this new pension product may come up for discussion in the meeting of the EPFO’s apex decision-making body Central Board of Trustees (CBT) in Guwahati on March 11 and 12.

During the meeting, a sub-committee set up by the CBT on pension related issues in November 2021 will also submit its report.

The source said that there are EPFO ​​subscribers who are getting more than ₹15,000 monthly basic salary, who are forced to contribute less (at the rate of 8.33% of ₹15,000 per month in EPS-95) and thus they Gets less pension.

The EPFO ​​had amended the scheme in 2014 to limit the monthly pensionable basic pay to Rs 15,000.

The limit of ₹15,000 is applicable only at the time of joining the service. This was revised upwards from ₹6,500 with effect from 1 September 2014 in view of the price hike and wage revision in the formal sector.

Later, the demand for raising the monthly basic pay limit to ₹ 25,000 was discussed and discussed, but the proposal was not approved.

According to industry estimates, the increase in pensionable wages could have brought 50 lakh more formal sector employees under the EPS-95.

“The proposal to increase the wage ceiling from Rs 15,000 per month to Rs 25,000 per month for coverage under the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 has been submitted by the Employees’ Provident Fund Organization (EPFO). No decision has been taken in this regard. Former Labor Minister Bandaru Dattatreya had said in a written reply in the Lok Sabha in December 2016.

The source said there is a need for a new pension product for those who are either forced to contribute less or who could not subscribe to the scheme as their monthly basic wages at the time of joining service were more than Rs 15,000 .

The source said that no step has been taken by the EPFO ​​to increase the pensionable salary limit in the immediate future and in that scenario, the body will have to think of giving coverage to those formal sector employees who are eligible for EPS due to higher salaries. -95 out. basic salary.

The issue of pensionable salary limit is also sub-judice in the Supreme Court. In 2014, the Kerala High Court allowed employees to contribute to EPS-95 based on the actual basic pay drawn by them.

In April 2019, the apex court had dismissed a special leave petition filed by the EPFO ​​against the Kerala High Court’s decision. In January 2021, the top court withdrew the dismissal order in the review petitions filed by the EPFO.

In February 2021, the apex court restrained the High Courts of Kerala, Delhi and Rajasthan from initiating contempt proceedings against the Center and the EPFO ​​for non-implementation of their decisions.

20 February, 2022, 2:15 pm

News Cinema on twitter News Cinema on facebook

Sunday, 20th February 2022

More Stories
Dragon Spacecraft Endurance is ‘Go’ for Launch – Commercial Crew Program
Father whose kiss led to two-month-old son’s death turned to drink before attacking ex-partner
Mila Kunis reflects on ‘awesome’ moment she discovered she’d made Time’s 100 Most Influential list
Cat-sized reptile with a short neck and long tail roamed Scotland 240 million years ago
Neetu Kapoor Shares Pics From Alia Bhatt’s Baby Shower: “Blessings And Gratitude”
New Orleans mayor to pay back $30k she blew on luxury flights after living in rent-free apartment
KBC 14: Amitabh Bachchan Hugs Son Abhishek Bachchan, Actor Gets Teary-Watch
Water quality in 40% of US threatened by thawing frozen pollution thanks to much warmer winters
NASA’s SpaceX Crew-5 Launch Less Than Two Hours Away – Commercial Crew Program
Biden Administration Pushes Oil Producers to Keep Production High
For Pelosi and McCarthy, a Toxic Relationship Worsens as Elections Approach
Akshay Kumar’s ‘Ram Sethu’ trailer is out on this date
PSG vs Benfica Live Streaming: When and Where to Watch Live Coverage of the Champions League Online on Live TV
US Gasoline Prices Follow Crude Oil Higher
World’s 50 Best Bars 2022 revealed, with Barcelona’s Paradiso No1
Woodchipper murder case: Brisbane court played covert listening devices planted by police
Alia Bhatt throws a grand baby shower, pictures go viral—take a look inside
During Florida Visit, Biden and DeSantis Promise to Put Politics (Briefly) On Hold
Hedge Fund Pioneer Ray Dalio Steps Back
Navy SEAL recruits blanketed in TEAR GAS singing ‘Happy Birthday’ so they can’t hold their breath
Apple AirPod and Apple AirPod Pro ear buds are both reduced on Amazon now with prices from $119
Abhishek Bachchan walked out of the set of the show after making a joke about Amitabh Bachchan.
M People founder fumes as PM takes to stage for conference speech to band’s ‘Moving On Up’ hit
As Alex Jones Stands Trial, Newtown Would Rather Forget Him
A Sendoff From Family and Friends – Commercial Crew Program
Sharon Osbourne discusses Ozzy’s Parkinson’s diagnosis in Jeremy Paxman’s ITV documentary
SpaceX Will Launch First Russian Astronaut: How to Watch
Kate Middleton wears Karen Millen dress at Royal Surrey County Hospital
Exciting Research Part of NASA’s SpaceX Crew-5 Mission – Commercial Crew Program
Wife killer who planned to live with ex-con has parole hearing canceled over address leak
Anushka Sharma fulfills husband Virat Kohli’s wish for ‘Dilli Wale Chole Bhature’ in Mumbai, see PICS
All 43 chief constables in England and Wales sign landmark agreement to attend housebreaking reports
NASA’s SpaceX Crew-5 Mission Coverage Starts Now! – Commercial Crew Program
Are Musk and Twitter Back On? Here’s What We Know.
BBC presenter ‘with love child signed catchphrase on stripper’s breasts’
Zee News: Latest News, Live Breaking News, Today News, India Political News Updates
Elon Musk says buying Twitter for $44 billion is ‘an accelerant to creating X, the everything app’
‘Talented footballer’ Tomasz Oleszak who was murdered in Gateshead moved to UK ‘for a better life’
Greenpeace protesters storm Liz Truss’ first Tory conference speech as party leader
Nobel Prize in Chemistry is awarded to Carolyn Bertozzi, Morten Meldal and K. Barry Sharpless
How Ukraine could achieve victory against Russia, according to experts
Balancing Extremes