Govt plans to provide monthly pension of Rs. 1,000 to PF employees

India Infoline News Service | Mumbai |

The finance ministry has agreed to a review of the Employees' Pension Scheme (EPS) and the financial implications of the proposal

The labour ministry is working on a plan to provide a minimum monthly pension of Rs. 1,000 for employees covered by the provident fund (PF) office, according to a media report.

The labour ministry had suggested this proposal to the finance ministry two years ago.

However, the finance ministry has been uncomfortable with the proposed pension
promise, the report added.

The finance ministry has agreed to a review of the Employees' Pension Scheme (EPS) and the financial implications of the proposal.

Last week, Cabinet Secretary Ajit Seth held a meeting to discuss the Cabinet note floated by the labour ministry on the issue.

The labour ministry has insisted to the finance ministry that the government should bear the additional costs arising out of providing a Rs. 1,000 monthly pension.

According to the labour ministry, the proposal will be taken up by the Cabinet soon.

The EPS was introduced as an additional benefit plan under the Employees' Provident Fund. Employers contribute 12% of the worker's basic salary to the EPF, of which about 8.33% is diverted into the pension scheme.


 

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