EPFO to ensure Rs1,000 minimum monthly pension from this week

The Employees Provident Fund Organisation (EPFO) will implement a scheme that would ensure a minimum pension of Rs1,000 a month for subscribers of its pension plan, within this week itself.

This will involve an addition allocation of around Rs1,217 crore by the government, starting 2014-15, EPFO said, adding that the scheme will benefit 2.8 million pensioners, including 5 lakh widows, who get less than this amount at present.

As per a proposal, pensioners were to get the benefit with effect from 1 April this year. However, implementation of the scheme got delayed because of cash constraints.

The previous UPA government had announced its decision to ensure a minimum monthly pension of Rs1,000 to subscribers of Employees' Pension Scheme-95 (EPS-95).

The labour ministry will notify this decision sometime this week.

The ministry is also expected to notify the decision of the EPFO trustees to enhance the wage ceiling for covering organised sector workers under EPFO ambit to Rs15,000 per month from existing Rs6,500, as also another decision to reduce administrative charges paid by employers to EPFO.

Implementation of the decisions were held up because the model code of conduct came into force after the general election dates were announced on 5 March.

The decision to provide the entitlement under EPS-95 run by the Employees' Provident Fund Organisation (EPFO) was taken by the union cabinet at its meeting held on 28 February.

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 5 February and decided to amend the EPS-95 scheme for the purpose.