Thursday, May 6, 2021
Home News Reports Modi government likely to double minimum pension for organised sector employees

Modi government likely to double minimum pension for organised sector employees

As per reports, the Narendra Modi led government is mulling to double or treble the minimum monthly pension of the retired employees of the organized sector in the country. The move, if implemented, could benefit lakhs of pensioners while costing the government a sizable additional expense.

Three months ago, a three-member committee, constituted by the labour ministry, had concluded that the existing pension of 1000 rupees was too low, and needed to be increased. Though the final decision is still pending one of the members of the labour ministry-constituted committee on pension, Ravi Wig stated, “We have discussed that the minimum pension should be between Rs. 2,000 to 5,000 instead of the present Rs. 1,000.”

“The committee has suggested that the government should immediately announce Rs. 2,000 as the minimum pension. The further enhancement up to Rs. 5,000 can be debated and arrived at over time. The government has a responsibility and, I think, the poor workers should be provided with an enhanced pension,” said Wig, who is also a central board member of the Employees Provident Fund Organisation.

Ravi Wig further went on to explain that the current pension if divided comes to approximately 33 rupees a day, which is not even sufficient to procure two square meals a day, even for a pensioner living in a rural area, leave alone the ones stating in urban areas, where things are much more expensive. He said the previous additional secretary of the labour ministry heading the committee has been promoted as the secretary, labour, and employment, and he is hopeful that the ministry will take a view on the issue sooner or later.

While a labour ministry spokesperson said he was not aware of any detail of the development, Prabhakar Banasura, a central board member of the EPFO, said that he is expecting a detailed discussion on pension during the subsequent meetings this week.

Employees provident fund organization has an active member base of over 6 crores(with an at least one-month contribution during the year). Every month, an organized sector employee contributes 12% of his basic salary and HRA to EPFO as a provident deduction, and a similar amount is contributed by the employer. From the employer’s 12% contribution, 8.33% goes to employees’ pension scheme and the rest to the provident fund. As of now, EPF contribution is mandatory for employees earning a monthly salary of up to 15,000 in companies and establishments with 20 or more workers on its payroll.

In an attempt to encourage institutions to create jobs, the BJP government in the budget announced for the fiscal year 2019, had announced that the government will pay the employer’s contribution of 12% of basic salary towards the retirement corpus of individuals in the Employees’ Provident Fund (EPF) in the first three years of employment.

The new Union budget 2018 has also proposed to amend the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 to reduce women employees’ contribution to the EPF to 8% for first three years of their employment, from 12%. The employers’ contribution will, however, remain at the existing 12%.

  Support Us  

Whether NDTV or 'The Wire', they never have to worry about funds. In name of saving democracy, they get money from various sources. We need your support to fight them. Please contribute whatever you can afford

OpIndia Staffhttps://www.opindia.com
Staff reporter at OpIndia

Related Articles

Trending now

Aam Aadmi Party’s Raghav Chadha defies logic while giving calculations on cryogenic tanks and medical oxygen

One feels that if Aam Aadmi Party leaders focus on resolving the oxygen crisis instead of overusing their tiny brain it for absurd calculations, it could perhaps save a few lives.

Karnataka Congress shares morphed image to allege BJP MP Tejasvi Surya’s link with BBMP bed scam after Congress supporter arrested in the case

Karnataka Congress morphed a photo to claimed that BBMP bed scam accused Congress supporter is actually BJP supporter

Fact sheet: Central govt’s Rs 190 crore a month subsidy on food grains vs Delhi govt’s Rs 8 crore a month free ration scheme...

While central govt provides free food grain under PMGKAY and wheat & rice at ₹2 and ₹3 under NFSA, Delhi govt is subsidising that ₹2 and ₹3

The orphans of Covid-19: Everything you need to know about legal adoption and govt rules

India has strict rules for parents who want to adopt a child. No individual, NGO or organization can take in a child without permission from the authorities.

Did a teacher in Karnataka die after self-administering lime juice to treat Covid-19? Here are the facts

Following the unfortunate death of Basavaraj and the subsequent misinformation peddled by media groups targeting the BJP leader and businessman Vijay Sankeshwar, the family members of the deceased teacher have come out in public to quell the misinformation about his death.

Bengal post-poll violence: Over a lakh people have fled from Bengal, says BJP’s Suvendu Adhikari

In recently concluded polls, TMC won 213 out of 292 seats while BJP won 77 seats. Suvendu Adhikari defeated West Bengal Chief Minister Mamata Banerjee in Nandigram.

Recently Popular

‘Out of control’ Chinese rocket falling back on Earth and no one knows where it is going to crash: Details

After launching space station hub, China's Long March 5B is doing 27,600km/h in failing orbit, with eventual crash site unknown.

Birbhum SP denies reports of rape of polling agents in Bengal’s post-poll violence

In light of the bloodshed and unspeakable atrocities committed against its party workers, the BJP has announced a nationwide dharna on May 5.

Bengal post-poll violence: TMC goons attack BSF jawans, set their homes on fire, Network 18 journalist reveals

Earlier, TMC Chief and West Bengal Chief Minister Mamata Banerjee had demonised the central paramilitary forces. She had even urged the party supporters to 'gherao' them during elections.

Banished by Twitter and Facebook, former US President Donald Trump launches his own communications platform

Trump's senior advisor Jason Miller additionally informed that this is not the social media platform they talked about and that the plans to launch the same remain intact.

Assam BJP disbands its minority cell after failing to make inroads in the Muslim-dominated areas in assembly elections

BJP said that the party has won fewer votes than the 20-member booth committees present in the minority dominated areas in Assam

Bullied by liberals, Pat Cummins reallocates his contribution from PM CARES to UNICEF Australia

Australian cricketer Pat Cummins has announced that he has relocated his donation to UNICEF Australia from the PM CARES fund.
- Advertisement -

 

Connect with us

254,757FansLike
538,004FollowersFollow
24,300SubscribersSubscribe