Government Enhances Minimum Pension to Rs. 1000 Under EPS 1995
GOVERNMENT OF INDIA
MINISTRY OF LABOUR AND EMPLOYMENT
LOK SABHA
UNSTARRED QUESTION NO. 3327
TO BE ANSWERED ON 16.12.2024
EMPLOYEES PROVIDENT FUND AND NPS
SHRI UMMEDA RAM BENIWAL:
state: Will the Minister of LABOUR AND EMPLOYMENT be pleased to
(a)whether the Government proposes to increase the minimum pension amount in view of the rising inflation at present there is a provision of only one thousand rupees as minimum pension under the Employees Provident Fund;
(b)if so, to what extent it is likely to be increased and by what time; (c)the total amount deposited with the Government as provident fund and pension on which no claim has been made by the employees; (d)whether the Government has any plans to return said amount to the employees;
(e)whether the Government proposes to pay dearness allowance to the pensioners in future;
(f)if not, the reasons therefor;
(g)whether the Government proposes to relax the norms to enable the employees of the Public Sector Undertakings to be covered under NPS; and
(h)if so, the details thereof?
ANSWER
MINISTER OF STATE FOR LABOUR AND EMPLOYMENT
(SUSHRI SHOBHA KARANDLAJE)
(a) & (b): With regard to enhancement of minimum pension, it is informed that the Employees Pension Scheme 1995 is a self-funded scheme with contributions @ 8.33 percent of wages from employer and 1.16 percent of wages by Central Government. All benefits under the scheme are paid out of such accumulations. The fund is valued annually and additional reliefs paid if the position of the fund so permits. Central Government has enhanced minimum pension to Rs. 1000/- p.m. by providing budgetary support keeping the widespread demand in view even though there is no provision in scheme for such budgetary support.
(c): There are no unclaimed accounts in Employees’ Provident Fund (EPF). However, as per Para 72(6) of the Employees’ Provident Fund Scheme, 1952, certain accounts are classified as Inoperative accounts.
All such inoperative accounts have definite claimants and whenever such a member prefers a claim in EPFO, the same is settled after scrutiny.
The total amount held in inoperative accounts under Employees’ Provident Fund as on 31.03.2024 is Rs.8,505.23 Crore.
(d): In the past 3 years, EPFO has settled members’ claims for an amount of Rs.7,576 Crore against the inoperative accounts.
(e) & (f): Demand of linking monthly pension of workers under EPS, 1995 with cost of living index was considered by the High Empowered Monitoring Committee constituted by the Central Government in the year 2018 for complete evaluation and review of EPS, 1995 and the same was found not feasible in the case of a self-funded scheme like Employees Pension Scheme, 1995.
(g) & (h): Any establishment covered under the provisions of Section 16 of the EPF & MP Act, 1952, may opt for any other scheme in force including National Pension System (NPS).
