A minimum pension of Rs 1,000 a month under a scheme run by retirement fund body EPFO will be a reality this week, a development that will benefit 28 lakh pensioners, who get less than this amount at present.
As per a proposal, pensioners were to get the benefit with effect from April 1 this year. The government will have to provide an additional amount of around Rs 1,217 crore to ensure a minimum pension of Rs 1,000, starting 2014-15.
"The previous government's decision to ensure a minimum monthly pension of Rs 1,000 to subscribers of Employees' Pension Scheme-95 (EPS-95) will be implemented this week as elections got over now. The Labour Ministry will notify it some time this week," an official source told PTI.
According to the source, the Ministry will also notify the decision of the EPFO trustees to enhance the wage ceiling for covering organised sector workers under EPFO ambit to Rs 15,000 per month from existing Rs 6,500. Another decision to reduce administrative charges paid by employers to EPFO will also be notified.
The decisions could not be implemented earlier because the model code of conduct came into force after the general election dates were announced on March 5.
The decision to provide the entitlement under EPS-95 run by the Employees' Provident Fund Organisation (EPFO) was taken by the Union Cabinet in its meeting held on February 28.
After the Cabinet approval, the decision to provide this entitlement was to be notified by the Labour Ministry, but for the model of code of conduct.
This will immediately benefit about 28 lakh pensioners, including 5 lakh widows. In all, there are 44 lakh pensioners under the EPFO scheme
The EPFO's apex decision making body the Central Board of Trustees (CBT) met on February 5 and decided to amend the EPS-95 scheme for the purpose.
