Parliamentary Panel seeks minimum Rs.3000 pension for employees
55 million employees contribute 8.33% against govt contribution of 1.16% towards Employees Pension Scheme
By Babushahi Bureau
Delhi, 4 September: A parliamentary panel has asked the government for hike in minimum pension at Rs 3,000 a month under the Employees’ Pension Scheme 1995 (EPS-95) run by retirement fund manager EPFO to help retired workers tide over rising prices.
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The committee on petitions said in its report, which was tabled in the RS by its chairman Bhagat Singh Koshyari that EPS is the only financial assurance to retired workers and their families, specially low and medium wage earners, and failure to strengthen the scheme has undone the very reason for instituting it,”
The committee suggested the government should increase its contribution to the scheme from the existing 1.16% of basic wages (basic pay + dearness allowance) to 8.33% to ensure a minimum pension of Rs 3,000.
As per the report of the committee, over 30 lakh employees (pensioners under the scheme) get less than Rs 1,000 a month, of which over 25 lakh get less than Rs 500. As of now, 55 million employees contribute 8.33% of their basic wages while the government contributes 1.16 per cent toward EPS-95.
55 million employees contribute 8.33% against govt contribution of 1.16% towards Employees Pension Scheme
By Babushahi Bureau
Delhi, 4 September: A parliamentary panel has asked the government for hike in minimum pension at Rs 3,000 a month under the Employees’ Pension Scheme 1995 (EPS-95) run by retirement fund manager EPFO to help retired workers tide over rising prices.
“
The committee on petitions said in its report, which was tabled in the RS by its chairman Bhagat Singh Koshyari that EPS is the only financial assurance to retired workers and their families, specially low and medium wage earners, and failure to strengthen the scheme has undone the very reason for instituting it,”
The committee suggested the government should increase its contribution to the scheme from the existing 1.16% of basic wages (basic pay + dearness allowance) to 8.33% to ensure a minimum pension of Rs 3,000.
As per the report of the committee, over 30 lakh employees (pensioners under the scheme) get less than Rs 1,000 a month, of which over 25 lakh get less than Rs 500. As of now, 55 million employees contribute 8.33% of their basic wages while the government contributes 1.16 per cent toward EPS-95.
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