Rs 1,000 minimum monthly pension to be a reality this month
In an election year, government does not want to leave any stone untouched. After increasing the EPF rates to 8.75%, Government is likely to approve a proposal that will entitle formal sector workers a minimum monthly pension of Rs 1,000. This move will benefit to those who are getting pension less than Rs.1000 per month.
Earlier, the ministry had proposed that the government should increase its subsidy on the scheme from 1.16 per cent of the basic wages to 1.79 per cent to assure the minimum pension amount of Rs 1,000 per month. However, it did not find favour with the Finance Ministry as this would have resulted in permanent increase in subsidy provided by government.
Besides, the government is in the process of raising the basic wages ceiling under the Employees Provident Fund Scheme to Rs 15,000 from existing Rs 6,500.
All those employees getting basic wages – including basic pay and dearness allowance – of more than Rs 6,500 per month, are not covered under the social security schemes run by EPFO.