EPFO Approves Minimum Pension and Wage Ceiling Increase
Trustees of the retirement fund body Employees' Provident Fund Organisation (EPFO) on Wednesday approved a proposal to provide a monthly pension of a minimum of Rs. 1,000, a decision that will immediately benefit about its 28 lakh pensioners.
The Central Board of Trustees (CBT), the apex decision-making body of EPFO, also decided to raise the monthly wage ceiling to Rs. 15,000 from Rs. 6,500 by amending the Employees' Provident Fund scheme, 1952, so that more workers can be brought under its various social security programs.
"The board has decided to approve the proposed amendments in the schemes to ensure a minimum monthly pension of Rs. 1,000 under EPS-95 and also increased the wage ceiling to Rs. 15,000 per month," Labour Minister Oscar Fernandes, who chaired the CBT meeting, told reporters here.
At present, workers with basic wages, including basic pay and dearness allowance, of up to Rs. 6,500 are mandatorily covered under the ambit of Employees' Provident Fund Organisation (EPFO).
According to an EPFO official, the Labour Ministry will soon move a proposal before the Union Cabinet for approval of the Rs. 1,000 minimum monthly pension.
"We have also reduced the administrative charges paid by the employers. Their burden would increase with the rise in the wage ceiling," the Minister said.
The board has also decided to reduce administrative charges from 1.10 percent of the basic wage, including basic pay and dearness allowance, to 0.85 percent. Besides, the trustees have also approved a proposed change in the methodology of computing the pensionable salary.
The pensionable salary will be calculated based on the average salary of the last 60 months instead of 12 months as provided in the EPS-95.
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52Trustees of the retirement fund body Employees' Provident Fund Organisation (EPFO) on Wednesday approved a proposal to provide a monthly pension of a minimum of Rs. 1,000, a decision that will immediately benefit about its 28 lakh pensioners.
The Central Board of Trustees (CBT), the apex decision-making body of EPFO, also decided to raise the monthly wage ceiling to Rs. 15,000 from Rs. 6,500 by amending the Employees' Provident Fund scheme, 1952, so that more workers can be brought under its various social security programs.
"The board has decided to approve the proposed amendments in the schemes to ensure a minimum monthly pension of Rs. 1,000 under EPS-95 and also increased the wage ceiling to Rs. 15,000 per month," Labour Minister Oscar Fernandes, who chaired the CBT meeting, told reporters here.
At present, workers with basic wages, including basic pay and dearness allowance, of up to Rs. 6,500 are mandatorily covered under the ambit of Employees' Provident Fund Organisation (EPFO).
According to an EPFO official, the Labour Ministry will soon move a proposal before the Union Cabinet for approval of the Rs. 1,000 minimum monthly pension.
"We have also reduced the administrative charges paid by the employers. Their burden would increase with the rise in the wage ceiling," the Minister said.
The board has also decided to reduce administrative charges from 1.10 percent of the basic wage, including basic pay and dearness allowance, to 0.85 percent. Besides, the trustees have also approved a proposed change in the methodology of computing the pensionable salary.
The pensionable salary will be calculated based on the average salary of the last 60 months instead of 12 months as provided in the EPS-95.
Regards,
[Email Removed For Privacy Reasons]
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Dear Sir I need a one clarification Please let me know I refer the entire notification but there is no amendment in regarding for reduced administrative charges 0.85 percent from 1.10 percent .
From India, Coimbatore
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From India, Coimbatore
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Does this mean that the minimum wages to be paid for any labor or executive employee will be 15,000 Rs? If so, how will it affect small and medium businesses across the country? Just requesting some clarity.
From India, Delhi
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From India, Delhi
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PF Notification for enhancement of wage ceiling & Pension wef 1-Sep-14.pdf