At present, all those employees in the organized sector are covered under EPS, whose basic salary (Basic Pay with DA) is up to Rs 15,000. Sources related to this matter said that the members of EPFO have demanded more pension on higher contribution. Therefore, it is being considered vigorously to introduce a new pension scheme or product for those whose monthly basic salary is more than Rs 15,000.
The EPFO had amended the scheme in 2014 to limit the monthly pensionable basic pay to Rs 15,000. The limit of Rs 15,000 is applicable only at the time of joining the service. It was revised upwards from Rs 6,500 with effect from September 1, 2014, due to wage revision and price hike in the organized sector.
Hence the need for a new product
The source said there is a need for a new pension product for those who are either forced to contribute less or who could not subscribe to the scheme, as their monthly basic salary at the time of joining service is Rs 15,000. was more than
New proposal may come on March 11-12
According to the source, the proposal on this new pension product is likely to come up in the meeting of the Central Board of Trustees (CBT), the apex decision-making body of the EPFO, in Guwahati on March 11 and 12. During the meeting, a sub-committee on pension related issues constituted by CBT in November, 2021 will also submit its report.
Demand to raise the limit of basic salary to 25 thousand
There has been a demand to increase the monthly basic pay limit to Rs 25,000. The issue was also discussed, but the proposal could not be approved. As per industry estimates, the increase in pensionable wages could bring 50 lakh more workers in the organized sector under the EPS-95.
EPFO added 14.6 lakh members in December
EPFO added 14.6 lakh new members on actual basis till December 2021. This is 16.4 per cent higher than 12.54 lakh in the same period a year ago. The Labor Ministry said that the number of customers on actual basis has increased by 19.98 percent in December as compared to November, 2021. The number of members exiting the EPFO has been declining since July 2021, the statement said. The maximum enrollment took place in the age group of 22-25 years.