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.
1 Comments
Nothing but an Election gimmick. The Congress could not implement this when they were in power for 10 years.They are thinking of it now when elections are around the corner.And ofcourse FUNDS will be generated by ADDITIONAL SERVICE TAXES!
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