The labour ministry will probably soon approach the Cabinet for any minimum pension connected with Rs 1, 000 each month for the subscribers on the Employees Provident Deposit Organisation. The ministry also can notify a hike in the basic wage reduce to Rs 15, 000 each month for a worker to get mandatorily covered from the EPFO.
After Oscar Fernandes took over as the labour minister, many pending issues were wear fast track. The UPA major brass also wished to announce a number of the labour welfare measures ahead of the Lok Sabha political election.
“The proposal intended for minimum pension is going to be put before your Cabinet soon, " the state run familiar with your development told FE. The EPFO will probably soon notify a hike in the basic wage to help Rs 15, 000 to get compulsorily covered underneath the EPFO, " the official said.
At current, employer contributes 8. 33% on the basic wages toward EPS, and the federal government contributes just 1. 16%. The proposal is usually to raise the government’s contribution to 1. 79% and hike the minimum decided basic salary ahead under EPF to help Rs 15, 000 each month from the current Rs 6, 500. Both the moves are likely to help cut your EPS deficit in addition to enable it to present a minimum pension of Rs 1, 000 monthly.
Although the money ministry was next to raising the lowest pension to Rs 1, 000 each month as it would entail extra fiscal burden connected with Rs 1, 100 crore every year, the UPA top brass has accepted the notion.
The finance ministry received told EPFO earlier to uncover its own resources as the extra fiscal load for ensuring a Rs 1, 000-minimum monthly pension can be Rs 1, 100 crore in addition to the R1, 600 crore it paid in 2012-13. Finances provisions will in any case increase to about Rs 1, 400-1, 500 crore simply by 2018-19.
The labour ministry had also remarked that additional burden intended for Rs 1, 000 monthly lowest pension under EPS is quite a bit less than Rs 7, 000 crore yearly additional burden around the exchequer for escalating pension (including senior years pension) under your the National Cultural Assistance Programme.