All about 7th Central Pay Commission for Central Government Employees. Dearness Allowance for Government Employees, CENTRAL GOVERNMENT EMPLOYEES NEWS - DOPT, DOPT Orders, Expected DA & more.
Ministry of Labour & Employment CPFC Directs to Ensure Credit of Pension to EPS Pensioners
by 30th March
26 MAR 2020
EPFO makes payment of pension to 65 lakh pensioners every month under the Employees pension Scheme, 1995.
Central Provident Fund Commissioner (CPFC) had directed to process pension payments in all 135 offices of
EPFO in advance so that no inconvenience is caused to pensioners on account of nationwide lock down for
containing Covid-19 outbreak.
EPFO officers and staff worked with dedication under most difficult circumstances but completed the
processing of pension payments in all 135 offices and provided pensioner wise pension payment details for 65
lakh pensioners alongwith requisite cheques to all pension disbursing banks. Link nodal branches of all
pension disbursing banks throughout India have been directed to ensure credit of pension in the accounts of
pensioners by 30th March, 2020. Thus timely credit of pension at this hour of need has been ensured by all
135 field offices. EPFO is committed to serve its pensioners at all times.
Ministry of Labour & Employment Employees' Pension Scheme (Amendment) Scheme, 2020
16 MAR 2020
Representations have been received from individual Employees’ Pension Scheme (EPS), 1995 pensioners as well as various pensioners associations raising issue of amendments in EPS, 1995 as well as demands, inter-alia, regarding enhancement of minimum monthly pension and restoration of commuted value of pension.
Considering the demands of EPS, 1995 pensioners, the Government had constituted a High Empowered Monitoring Committee for complete evaluation and review of EPS, 1995. Based on Committee’s recommendation, the Government vide Notification G.S.R. No. 132(E) dated 20.02.2020 has notified decision to restore normal pension after completion of fifteen years from the date of such commutation, in respect of those members who availed the benefit of commutation of pension under the erstwhile paragraph 12A of this Scheme, on or before the 25th day of September, 2008.
The State / UT-wise details of number of employees enrolled under EPS, 1995 at present are at Annexure I.
Annexure I
State / UT-wise details of number of employees enrolled under EPS, 1995
Sl. No.
State / UT
Number of EPS, 1995 Members
1
ANDAMAN AND NICOBAR ISLANDS
46099
2
ANDHRA PRADESH
4894239
3
ARUNACHAL PRADESH
34262
4
ASSAM
1002369
5
BIHAR
1810148
6
CHANDIGARH
2773032
7
CHHATTISGARH
2120580
8
DELHI
19340659
9
GOA
1555143
10
GUJARAT
18925544
11
HARYANA
18840638
12
HIMACHAL PRADESH
1779268
13
JHARKHAND
2438508
14
KARNATAKA
28574372
15
KERALA
3608629
16
MADHYA PRADESH
5579539
17
MAHARASHTRA
48542645
18
MANIPUR
40695
19
MEGHALAYA
120929
20
MIZORAM
10007
21
NAGALAND
24928
22
ODISHA
3533218
23
PUNJAB
4314283
24
RAJASTHAN
6251397
25
TAMIL NADU
28826389
26
TELANGANA
13444683
27
TRIPURA
106403
28
UTTAR PRADESH
11330944
29
UTTARAKHAND
3746454
30
WEST BENGAL
10469959
The State/UT-wise details of the amount distributed under EPS, 1995 during each of the last three years including the current year are at Annexure II.
State / UT-wise details of the amount (in Rs.) distributed under EPS, 1995
Sl. No.
State / UT
2017-18
2018-19
2019-20
1
ANDAMAN AND NICOBAR ISLANDS
61497107
62773604
70272071
2
ANDHRA PRADESH
1820048399
1837166781
1765949928
3
ARUNACHAL PRADESH
10866361
14758448
14173636
4
ASSAM
773713407
932873353
880834211
5
BIHAR
1653339800
1857398598
1673833899
6
CHANDIGARH
1614396700
2221443125
1841556167
7
CHHATTISGARH
1902541161
2030108245
2028321738
8
DELHI
4444734231
5376402712
5065776244
9
GOA
752720855
778092415
671802182
10
GUJARAT
3799861328
3866846976
3711775330
11
HARYANA
2946290168
2980933921
2643033792
12
HIMACHAL PRADESH
1213953849
1263977324
1177646186
13
JHARKHAND
1745556434
1820142321
1759222457
14
KARNATAKA
4351034413
3917371170
3446372700
15
KERALA
2934012504
3308418201
3250966339
16
MADHYA PRADESH
1552510160
1745126898
1536409360
17
MAHARASHTRA
7314959982
6119175248
4860107122
18
MANIPUR
28115037
40466950
36423753
19
MEGHALAYA
88095948
102186527
90112183
20
MIZORAM
6627577
7585301
7449618
21
NAGALAND
22956418
28794944
29193288
22
ODISHA
1996070775
2198978751
2296623899
23
PUNJAB
1135648802
1214518583
1234162850
24
RAJASTHAN
1951157372
2406231827
2087827011
25
TAMIL NADU
4810558218
4597522638
3885314268
26
TELANGANA
4327407810
4416820213
3745388028
27
TRIPURA
151352846
164311264
179142181
28
UTTAR PRADESH
1697131570
1878477447
1785924637
29
UTTARAKHAND
1287535813
1197591602
1179233249
30
WEST BENGAL
2902303074
2906927989
3074741443
This information was given by Shri Santosh Kumar Gangwar Union Minister of State (I/C) for Labour and Employment in written reply to a question in Lok Sabha today.
Year End Review 2019 : Ministry of Labour and Employment
More than 39 Lakhs Beneficiaries Enrolled In PM-SYM and more than 20,000 in NPS - Traders
1,52,778 establishments covering 1,21,65,587 Employees Benefitted under PMRPY
30 DEC 2019
Ministry of Labour and Employment has taken a number of initiatives for bringing transparency and accountability through
reforms and enforcement of Labour Laws, with the objective of strengthening the safety, security, health, social security
for every worker and bringing ease of compliance for running an establishment to catalyze creation of employment
opportunities. These initiatives include governance reforms through use of e-governance measures and legislative reforms by
simplifying, amalgamating and rationalizing the existing labour laws into 4 labour codes. Two mega pension schemes were
launched during the year for old age protection and social security of unorganized workers.
LEGISLATIVE INITIATIVES: LABOUR LAW REFORMS
Labour Codes: As per the recommendations of the 2nd National Commission on Labour, Ministry has taken steps for
codification of existing Central labour laws into 4 Codes by simplifying, amalgamating and rationalizing the relevant
provisions of the Central Labour laws. At present, the Ministry has been working on to simplify, amalgamate &
rationalize the provisions of the existing Central labour laws into 4 Labour Codes. (I) Labour Code on Wages: The Code on Wages, 2019 subsumes 4 existing Laws, viz. the Minimum Wages Act, 1948; the
Payment of Wages Act, 1936; the Payment of Bonus Act, 1965; and the Equal Remuneration Act, 1976. It has been passed by both
Houses of the Parliament and assented to by the President on 08.08.2019. (II) Labour Code on Industrial Relations: The draft Labour Code on Industrial Relations subsumes the existing Laws
viz. The Trade Union Act, 1926; The Industrial Employment (Standing Orders) Act, 1946; The Industrial Disputes Act, 1947.
The Code has been introduced in the Lok Sabha on 28.11.2019. (III) Labour Code on Social Security & Welfare: The draft Code on Social Security subsumes 09 Labour Acts like:
The Employees’ Compensation Act, 1923, The Maternity Benefit Act, 1961, The Payment of Gratuity Act, 1972, The Unorganized
Workers’ Social Security Act, 2008 etc.
The Code has been introduced in Lok Sabha on December 11, 2019. (IV) Labour Code on Occupational Safety, Health & Working Conditions: The Occupational Safety, Health &
Working Conditions Code, 2019 subsumes the 13 Labour Acts like: The Factories Act, 1948, The Plantation Labour Act, 1951,
The Mines Act, 1952, The Building and Other Constructions Workers’ (Regulation of Employment and Conditions of Service) Act,
1996 etc.
The Occupational Safety Health & Working Conditions Code, 2019 was introduced in the Lok Sabha on 23.07.2019. Presently,
the Code has been referred to the Parliamentary Standing Committee on Labour for examination.
GOVERNANCE REFORMS THROUGH TECHNOLOGY
Shram Suvidha Portal:
The Ministry of Labour & Employment has developed a unified Web Portal ‘Shram Suvidha Portal’, to bring transparency and
accountability in enforcement of labour laws and ease complexity of compliance.
Allotment of unique Labour Identification Number (LIN) to Units after registration to facilitate online inspection
& compliance was started on the Portal with its launch on 16.10.2014 itself. Unique Labour Identification Number (LIN)
has been allotted to 27,81,065 units as on 08.11.2019. Transparent Labour Inspection Scheme in Central Sphere was started on the Portal with its launch on 16.10.2014
itself. Since the launch of the Labour Inspection Scheme, 5,24,189 inspection reports across the four Central Labour
Enforcement Agencies have been uploaded on Shram Suvidha Portal.
ONLINE RETURN - Unified Online Annual Returns have been made mandatory in respect of eight (8) Central Labour Acts,
namely, the Payment of Wages Act, 1936, the Minimum Wages Act, 1948, the Maternity Benefit Act, 1961, the Payment of Bonus
Act, 1965, the Industrial Disputes Act, 1947.the Contract Labour (Regulation and Abolition) Act, 1970, the Inter-State
Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979, and the Building and Other Construction
Workers (Regulation of Employment and Condition of Service) (BOCW) Act, 1996. These Returns which were half yearly/annually
earlier, now need to be filed by all employers annually only and are to be filed online. 1,08,711 online returns have been
filed on the Shram Suvidha Portal as on 08.11.2019 Since launch of the Online Annual Return.
31,047 online returns have been filed on the Shram Suvidha Portal till November 08, 2019 under Mines Act, 1952 (Coal Mines
Regulations, Metallurgical Mines Regulations and Oil Mines Regulations).
Unified monthly Electronic Challan-cum-Return (ECR) for EPFO and ESIC has been made operational.
COMMON REGISTRATION: Common Registration form for EPFO and ESIC has been made operational. 1,27,544 units have been
registered with EPFO & 1,07,681 units have been registered with ESIC as on November 08, 2019.
Common Registration under three Central Acts namely the Building and Other Construction Workers (Regulation of Employment
and Condition of Service) Act, 1996, the Inter-State Migrant Workmen (Regulation of Employment and conditions of Service)
Act, 1979 and the Contract Labour (Regulation and Abolition) Act, 1970 is being provided online on Shram Suvidha Portal.
6052 registrations have been issued using this facility as on 08.11.2019.
Licenses under two Central Acts, namely, the, Inter-State Migrant Workmen (Regulation of Employment and Conditions of
Service) Act, 1979 and the Contract Labour (Regulation and Abolition) Act, 1970 have been made online. 20,316 licenses have
been issued using this facility as on 08.11.2019.
State Integration
Integration of States with Shram Suvidha Portal is under way. As on date, Haryana, Gujarat, Rajasthan, Uttar Pradesh, Madhya
Pradesh, Maharashtra, Punjab, Uttarakhand and Delhi are being integrated with the Portal. Data is being shared and LIN is
being allotted to the establishments covered by the state labour enforcement agencies.
Start Up India
Facility for exemption from Labour Inspections under six (6) Central Labour Acts is being provided to the Start-ups which
submit self certified declarations through Shram Suvidha Portal.
State/UT Governments have been advised to regulate the inspections for the Start-Ups, wherever applicable and extend the
self-certification compliance regime from 3 years to 5 years. 27 States/UTs have taken action on the advisory dated
12.01.2016 /06.04.2017 issued by this Ministry for self-certification and to regulate inspection under the four (4) labour
laws viz. the Building & Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996, the
Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979,the Payment of Gratuity Act, 1972
and the Contract Labour (Regulation and Abolition) Act, 1970 for the start-ups wherever applicable.
Social Security Schemes
Government of India has launched two pension schemes for old age protection and social security of Unorganised Workers in
2019.
Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM), a voluntary and contributory pension scheme, was launched in February,
2019 for the benefit of unorganized workers. It is central sector scheme open to unorganised workers, whose monthly income
is Rs.15000/- or below and who has an Aadhar number as well as savings bank / jan-dhan account. The minimum age for joining
the scheme is 18 years and the maximum is 40 years. Under the scheme, minimum assured monthly pension of Rs.3000/- will be
provided to the beneficiaries from the age of 60 years onwards. Enrolment to the Scheme is done through the Common Service
Centres, with its network of 3.50 lakh Centres across the country. In addition eligible persons can also self-enroll through
visiting the portal www.maandhan.in. Under the scheme, the subscriber is required to pay the prescribed monthly contribution
amount and the Central Government provides equal contribution. Life Insurance Corporation of India (LIC) is the Pension Fund
Manager and shall be responsible for pension pay-out. Total number of 39,00,525 beneficiaries under PM-SYM have been
enrolled as on 10.12.2019.
National Pension Scheme for Traders, Shopkeepers and Self-Employed Persons has been launched on 12.09.2019. It is a
voluntary and contributory pension scheme. Enrolment to the Scheme is done through the Common Service Centres, with its
network of 3.50 lakh Centres across the country. In addition eligible persons can also self-enroll through visiting the
portal www.maandhan.in. The traders in the age group of 18-40 years with an annual turnover, not exceeding Rs.1.5 crore and
who are not a member of EPFO /ESIC/ NPS/ PM-SYM or an income tax payer, can join the scheme. Under the scheme, 50% monthly
contribution is payable by the beneficiary and equal matching contribution is paid by the Central Government. Subscribers,
after attaining the age of 60 years, are eligible for a monthly minimum assured pension of Rs.3,000/-. Total number of
20,000 beneficiaries under NPS-Traders have been enrolled as on 10.122019. Pension Week was also celebrated in all the States/UTs w.e.f. 30th November to 06th December, 2019 in coordination
with Common Service Centres, to increase the enrolments under both the Schemes, i.e. PM-SYM and NPS-Traders. A Central level
function was inaugurated on 30.11.2019 by Minister for Labour and Employment launching the Pension Week/Pension Saptah. All
the State Governments/UT Governments were requested for popularizing and bringing more awareness about the scheme. The
progress of the Scheme is being reviewed regularly in the Ministry for taking initiatives under Mission Mode.
Major Steps Taken In EPFO
Three new apps to improve service delivery of subscribers were launched by Shri Santosh Kumar Gangwar, Minister of State
(I/C) for Labour and Employment on EPFO Foundation Day. The details of three important digital initiatives of EPFO are as
under:
Online Facility for UAN generation by worker: Now any workers can obtain Universal Account Number (UAN) directly
on EPFO website which enrolls them for PF, Pension and Life Insurance benefits and a worker need not depend on his employer
alone for UAN. This is in the direction of ease of living and ensuring universal social security.
EPS Pensioner’s PPO in DigiLocker website / Application (APP) EPFO integrates with DigiLocker of NeGD to create
depository of electronic PPOs which is accessible to individual pensioners. This is a move towards paperless system and ease
of living for pensioners.
e-Inspections: Digital interface of EPFO with employers: The E-Inspection Form would be available in user login
of employers not filing ECR which enables employer to inform either closure of business or unpaid dues with proposal for
payment. It will nudge employers for compliant behavior and prevent undue harassment of non-willful defaulters and eliminate
inspector raj.
Central Board of Trustees, EPF recommends crediting of 8.65% rate of interest on Accumulations in the EPF Member’s
Account for the year 2018-19:
In 224th meeting of the Central Board of Trustees, EPF under the chairmanship of Union Minister of State for Labour and
Employment (I/C) Shri Santosh Kumar Gangwar, the Central Board recommended crediting of 8.65 % rate of interest on the EPF
accumulations in the EPF member’s account for the year 2018-19.
New Initiatives taken in Central Board of Trustees (CBT) meeting held on 21 August 2019: 1. Amendment in Employees’ pension Scheme 1995:
In a major decision, the Central Board of Trustees (CBT) EPF in a meeting held at Hyderabad on 21 August 2019, approved the
proposal to recommend for amendment in Employees' Pension Scheme (EPS) 1995 for restoration of commuted value of pension to
the Pensioners after 15 years of drawing commutation which will benefit approx. 6.3 lakhs pensioners. This was a long
pending demand of the pensioner
2. Launch of Revamped EPFIGMS 2.0 Version:
The Chairman CBT also launched the revamped EPFIGMS 2.0 version which will benefit more than 5 crores subscribers and lakhs
of employers by speedy and smooth resolution of grievances. Selection of ETF Manufacturers: The Board approved the decision to choose the Exchange Traded Fund (ETF)
manufacturers through public bidding by 30/10/2019, extension of the term of the present ETF manufacturers (SBI MF and UTI
MF) till then and also to authorized the Finance Investment & Audit Committee (FIAC) to conduct the exercise of choosing
ETF manufacturers. Allocation of investment in Nifty 50 and Sensex: The Board approved the proposal that the fund allocation between
Nifty 50 and Sensex ETFs be divided evenly, i.e. in the ratio of 50% to 50%. Appointment of a Consultant in addition to M/s. CRISIL Ltd: The Board approved the nomination of members from
employer’s and employee side in a Committee constituted to select and appoint a separate Agency/Consultant in addition to
M/s. CRISIL limited, inter-alia to review the working of the Portfolio Managers (PMs), assist the investment Committee in
redemption of ETFs, etc.
Appointment of Portfolio Managers for managing funds of Central Board, EPF: The Central Board approved Request for
Proposal (RFP) document for appointment of Portfolio Managers and recommendation of the FIAC on appointment of Portfolio
Managers.
Exercise of early redemption options available in DHFL Bonds: The Board approved for early redemption option in DHFL
bonds recommended by FIAC.
Major Steps Taken In ESIC
Rate reduction in ESI Contribution- The ESI Corporation has reduced rates of ESI Contribution being paid by employees
and employers covered under ESI Scheme from 6.5 % (Employees’ share 1.75% & Employers’ share 4.75%) to 4% (Employees’
share 0.75% & Employers’ share 3.25%) with effect from 01.07.2019. This reduction of contribution rates, will ensures
financial relief to employers and employees. However, the healthcare benefits under the ESI scheme will remain the same. The
decision will benefit 36 million workers and 1.28 million employers.
Health Passbook for ESI Beneficiaries - ESIC has introduced a Health Passbook for ESI Beneficiaries in Phased manner.
This Health Passbook serves as a user-friendly mechanism for beneficiary identification, recording of clinical finding and
consultation advice by the Insurance Medical Practitioner(s). Salient feature of Health Passbook is as under: -
Separate Passbook with Unique Health ID, QR code and photograph of Insured Persons and his/her family members.
Serves for beneficiaries identification & recording of clinical findings and consultation advice by ESI Doctors/
IMPs.
Passbook would be issued by the ESIC Branch Offices in a phased manner.
Insured Persons of ESIC from newly implemented area to get treatment under Ayushman Bharat - Pradhan Mantri Jan Arogya
Yojana (PMJAY): ESIC has decided to provide cashless medical care services to entitled Insured Persons and
Beneficiaries under Ayushman Bharat package rates in newly implemented area of 102 designated Districts through PMJAY
empanelled hospitals up to a maximum limit of Rs.5.00 lakh, beyond which individual case will be channelled to ESIC for
seeking approval for further expenditure on ESI beneficiaries. Similarly, PMJAY beneficiaries may get in-house medical
treatment services as per Ayushman Bharat approved packages from underutilized ESI Hospitals.
ESIC - Chinta Se Mukti app launched - The Corporation has also launched the ESIC “Chinta Se Mukti” app
available on the UMANG platform to facilitate stakeholders to view contribution details, eligibility for benefits, claim
status, etc. in their Mobile Handset.
Extending medical benefits to Non-IPs - The Corporation has extended its medical services to Non-Insured Persons
(General Public) in its under-utilized hospitals. Now, Non-IPs can avail medical services from underutilized ESIC Hospital,
at Alwar (Rajasthan), Bihta (Bihar), Gulbarga (Karnataka), Bareilly Varanasi, Sarojani Nagar (Lucknow) & Jajmau (Kanpur)
on a nominal charge of Rs.10/- for OPD Consultation and at 25% of CGHS package rates for IPD.
Unified Website - In order to maintain the corporate identity of ESIC and to have a repository of common information,
and also to have uniformity in design and content, a Unified Website www.esic.nic.in has been launched. All the Regional
Offices/Sub-Regional Offices, ESIC Hospitals and ESIC Medical Institutions & Hospitals have been made part of this
single unified website.
ESIC- contributing excellence in sports - ESIC had recruited 135 meritorious sports persons including Shri Pramod
Bhagat, ace para-shuttler from all across India during the year 2016. Shri Pramod Bhagat, an ESIC employee at Regional
Office, Bhubaneswar has received prestigious Arjuna Award for the current year on 29th Aug., 2019. Shri Pramod Bhagat has
many tournaments to his credit including five international titles in six tournaments he participated. He won a gold medal
in the men’s singles SL3 category at the BWF Para-Badminton World Championships in Basel. Bhagat said he is now focusing to
clinch a gold medal in the Olympics.
Strengthening of Medical Infrastructure - In order to provide in-house quality medical services in the major ESIC
Hospitals, of late, ESIC has procured state-of-the-art medical equipments viz. MRI, CT Scan etc. for ICU, Secondary &
Super Speciality care.
National Career Service Project-(NCS) - The Ministry is implementing the National Career Service (NCS) Project as a
Mission Mode Project for transformation of the National Employment Service to provide a variety of employment related
services like career counselling, vocational guidance, information on skill development courses, apprenticeship, internships
etc. The services under NCS are available online and can be accessed directly, through Career Centres, Common Service
Centres, post offices, mobile devices, cyber cafes etc. The various stakeholders on the NCS platform include job-seekers,
industries, employers, employment exchanges (career centres), training providers, educational institutions and placement
organizations.
The progress of NCS Portal is given below:
NATIONAL CAREER SERVICE
Sl. No.
Parameters
Number as on 31st October, 2019
1
Active Jobseekers Registered
1.01 crore
2
Active Employers Registered
25184
3
Total Vacancies Mobilized
58.50 lakh
With the increased focus of Government on Career Counselling, the Ministry proposes to create a network of Career
Counsellors where the Career Centres will become the hub of Career Counselling in their area. Under the process, 5645 Active
Career Counsellors from various States/UTs have got registered at NCS Portal.
The NCS Project also envisaged setting up of Model Career Centres (MCCs) to be established in collaboration with States and
other institutions to deliver employment services. Approval for 146 MCCs has been accorded (including 07 MCCs on non-funding
basis). These model centres can be replicated by the States from their own resources. The Government now, keeping in view of
the importance of the employment as a thrust area in Government Schemes, and to provide employment related services to
maximum job seekers and other stakeholders has decided to establish 100 more Model Career Centres (MCCs) thereby extending
the geographical coverage of the scheme increasing number of Government funded MCCs to 200 during 14th Finance commission
(2017-2020).
Proposals were received from different States. On the recommendations of the Appraisal Committee, Government has approved
171 (including 07 on non-funding basis) Model Career Centres. Further 37 more model career centers have been recommend by
the Inter Ministerial Appraisal Committee in the meeting held on November 20, 2019.
National Career Service Centres for Differently Abled (NCSC-DAs): 21 National Career Service Centres for Differently
Abled (NCSC-DAs) are functioning in the country under the administrative control of Directorate General of Employment, M/O
Labour & Employment. These Centres evaluate residual capacities of Persons with Disabilities, provide Vocational
Training, and extend Vocational Rehabilitation assistances etc. to Persons with Disabilities (PWDs). The Services of NCSC-
DAs are open to Persons with Disabilities irrespective of the gender and education in the category of Locomotor, Visual
& Hearing impaired, Mild Mental Retardation and Leprosy Cured.
6644 Candidates have been rehabilitated upto October 31, 2019 by NCSC-Das. National Career Service Centre Centres (NCSCs) for SC/STs; Directorate General of Employment is implementing the
scheme for “Welfare of SC/ST job seekers through Coaching, Vocational Guidance and Training and Introduction of new courses
in existing National Career Service Centre Centres (NCSCs) for SC/STs and Establishment of new NCSCs in the States not
covered so far” Under the scheme, National Career Service Centre Centres (NCSCs) for SC/STs has been set up by Govt. of
India, Ministry of Labour& Employment, DGE to enhance the employability of SC/ST job seekers through coaching/training.
So far 25 National Career Service Centre Centres for SCs/STs have been set up.
67761 candidates have been provided guidance and counselling services, 5621 students were trained in typing and shorthand
and 1050 candidates were trained in computer skills by NCSC-SC/STs upto October 31, 2019.
Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) - Under the scheme, Government of India is paying Employer’s full
contribution i.e. 12% towards EPF and EPS both (as admissible from time to time) for a period of three years to the new
employees through EPFO.
This scheme has a dual benefit, where, on the one hand, the employer is incentivised for increasing the employment base of
workers in the establishment, and on the other hand, a large number of workers will find jobs in such establishments. A
direct benefit is that these workers will have access to social security benefits of the organized sector. All the
beneficiaries under this scheme are Aadhaar Seeded.
152778 Establishments covering 12165587 Beneficiaries have benefitted till November 25, 2019 under Pradhan Mantri Rojgar
Protsahan Yojana (PMRPY).
BRIEF OF WORKERS EDUCATION SCHEME
The Dattopant Thengadi National Board for Workers Education & Development (renaming of CBWE), an autonomous
body under the Ministry of Labour & Employment, Government of India conducts the Workers Education
Programmes of varied nature and duration in the country through its 50 Regional and 7 Sub-Regional
Directorates spread Kashmir to Kannyakumari and Leh and laddakh for all categories without making any
distinction on the basis of male and female in Organised, Unorganised and Rural Sectors. The DTNBWED
training programmes aim at creating desired awareness among the workers in general and unorganized/ rural
workers in particular about their rights and entitlements under various welfare schemes of the Central / State
government etc.
The Board has organized 1625 training programme organized sector workers, 1120 programme conducted for unorganized and
150 for rural workers.
PIB
Year End Review 2019, Ministry of Labour and Employment, PMSYM, PMRPY, EPFO, ESIC, Pension, EPF, Employees pension Scheme,
Central Government Employees News,
Pension Hike Latest News: Minimum monthly pension of Rs. 3000 after attaining the age of 60 years
Ministry of Labour & Employment Hike in Pension
25 NOV 2019
Government of India in February, 2019 launched Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM), a voluntary and contributory
pension Scheme, for the benefit of unorganized workers, as per eligibility. The scheme assures minimum monthly pension of Rs.
3000 to the beneficiaries after attaining the age of 60 years. All unorganized workers, in the age group of 18-40 years,
whose monthly income is up to Rs. 15,000 and who are not members of Employees’ Provident Fund Organization or Employees’
State Insurance Corporation or National Pension System (Government contributed) and are also not income tax payers, are
eligible to enroll under the Scheme. The subscriber is required to pay the prescribed monthly contribution amount and
the Central Government provides the equal matching contribution. This Scheme is implemented through Life Insurance
Corporation of India. Enrollment under the Scheme can be done through any of the Common Service Centres across the
country.
Further, vide notification No. G.S.R. 593 (E) dated 19.08.2014, a minimum pension of Rs. 1000 per month has been fixed with
effect from 01.09.2014 for the pensioners under Employees' Pension Scheme (EPS), 1995 framed under the Employees’ Provident
Funds and Miscellaneous Provisions Act, 1952, applicable to establishments which belong to industries and classes of
establishments listed in Schedule-I and where number of employees is 20 or more. No decision has been taken at present to
further enhance the minimum pension under EPS, 1995.
Further, Atal Pension Yojana (APY) was launched in May, 2015, by the Government of India, and Indian Citizens between the age
group of 18 to 40 years are eligible to join APY through their savings bank account or post office savings bank account.
Depending upon the pension plan selected, each subscriber under APY shall receive a guaranteed minimum pension of Rs. 1000/-
per month or Rs. 2000/- per month or Rs. 3000/- per month or Rs. 4000/- per month or Rs. 5000/- per month, after the age of
60 years until his/her death.
This information was given by Shri Santosh Kumar Gangwar Union Minister of State (I/C) for Labour and Employment in written
reply to a question in Lok Sabha today.
Central Board of Trustees (CBT) approved the proposal to recommend for amendment in Employees Pension Scheme (EPS)
1995
Ministry of Labour & Employment
CBT Approved Proposal to Recommend Amendment in EPS 1995 225th meeting of CBT held on 21st august, 2019 at
Hyderabad
22 AUG 2019
In a major decision, the Central Board of Trustees (CBT) EPF in a meeting held at Hyderabad on 21 August 2019, approved the
proposal to recommend for amendment in Employees' Pension Scheme (EPS) 1995 for restoration of commuted value of pension to
the Pensioners after 15 years of drawing commutation which will benefit approx. 6.3 lakhs pensioners. This was a long
pending demand of the pensioners.
The Minister of State (I/C) for Labour and Employment Shri Santosh Kumar Gangwar whose also Chairman CBT, while addressing
the CBT expressed satisfaction that Employees' Provident Fund Organisation (EPFO) is settling more than 91 % claims of EPF
members in online mode and lauded the efforts made to improve services for settlement of claims of family of deceased
members and EPF call centre function 24 by 7.
He also appreciated the good governance strategy adopted by EPFO in saving of Rs.22 crores p.a. due to negotiating reduced
OD charges increased FD interest and waiver of collection charges by SBI and further savings of Rs.50 lakhs p.a. due to
reduction in collection charges by three banks and achievement of highest yield (8.55%) by Portfolio Managers since July
2015.
The Minister released the educative booklet on seasonal employees regarding special provision in EPS’1995 regarding
eligibility of seasonal employees for pension. The contents of booklet brings out the Scheme provision that contributory
service in any year, even if contributory period is less than a year is treated as full year of eligible service for
seasonal employee and this will help dispel doubts in minds of members/employers.
The Chairman CBT also launched the revamped EPFIGMS 2.0 version which will benefit more than 5 crores subscribers and lakhs
of employers by speedy and smooth resolution of grievances.
The Board approved the proposal for Selection and Performance Evaluation of next Custodian by the new Consultant which will
be appointed on the basis of Report of Five Members’ Committee constituted by the CBT for the purpose.
In the matter of coupon default of IL&FS Ltd, the Board nominated three officers of Investment Division of EPFO to
attend the Debenture - Holders’ Meeting that may be held in future and if need be, vote on behalf of the Central Board,
EPF.
Selection of ETF Manufacturers: The Board approved the decision to choose the Exchange Traded Fund (ETF) manufacturers
through public bidding by 30/10/2019, extension of the term of the present ETF manufacturers (SBI MF and UTI MF) till then
and also to authorized the Finance Investment & Audit Committee (FIAC) to conduct the exercise of choosing ETF
manufacturers.
Allocation of investment in Nifty 50 and Sensex: The Board approved the proposal that the fund allocation between Nifty 50
and Sensex ETFs be divided evenly, i.e. in the ratio of 50% to 50%.
Appointment of a Consultant in addition to M/s. CRISIL Ltd: The Board approved the nomination of members from employer’s
and employee side in a Committee constituted to select and appoint a separate Agency/Consultant in addition to M/s. CRISIL
limited, inter-alia to review the working of the Portfolio Managers (PMs), assist the investment Committee in redemption of
ETFs, etc.
Appointment of Portfolio Managers for managing funds of Central Board, EPF: The Central Board approved Request for Proposal
(RFP) document for appointment of Portfolio Managers and recommendation of the FIAC on appointment of Portfolio
Managers.
Exercise of early redemption options available in DHFL Bonds: The Board approved for early redemption option in DHFL bonds
recommended by FIAC.
Consent for Transfer of Non- Convertible Debentures (NCDs) of GSPC to GSIL: EPFO has total investment of Rs.2300 Cr in GSPC
NCDs. The Board approved the transfer of NCDs of GSPC to GSIL, a wholly owned subsidiary of Govt. of Gujarat and a better
rated company which had made an offer to take over debt of GSPC with budgetary support of Government of Gujarat
Legal Entity Identifier Code (LEI) for participation in non- derivative markets by EPFO: In Nov’18, the Reserve Bank Of
India (RBI) issued advisory to all eligible market participants in the Financial Markets to obtain LEI Code. The Board
approved the nomination of the EPFO Officers as the authorized Officials to obtain LEI Code.
Withholding Investments in bonds of private sector companies: The CBT approved the decision to withhold any further
investment in Private Sector Companies Bonds and to compulsorily consider one of the two required ratings necessarily from
CRISIL, CARE, ICRA & India Ratings for investments in PSU Bonds category.
The Board ratified the decision of put option in NCDs of Tamil Nadu Power Finance Corporation and also approved put option
in bond issued Kerala Finance Corporation & Tamil Nadu Power Finance and Infrastructure Dev. Corp. Ltd.
Shri Raghunathan, Employees' Representative on the Central Board, EPF appreciated the efforts of the Finance Investment
& Audit Committee chaired by the Central Provident Fund Commissioner in finalizing the new Portfolio Managers for
investing EPFO's corpus through a very transparent procedure. He further informed the Board that while SBI's Fund
Management Arm has quoted 94% lesser than SBI PMS in the last mandate, UTI AMC has quoted 28% lesser. This would result in
huge savings in portfolio management fees by EPFO.
Government proposes to increase the minimum pension for EPF pensioners?
GOVERNMENT OF INDIA
MINISTRY OF LABOUR AND EMPLOYMENT LOK SABHA
STARRED QUESTION NO: 23
ANSWERED ON: 24.06.2019
EPF Pension
N.K. Premachandran
Will the Minister of
LABOUR AND EMPLOYMENT be pleased to state:-
(a)whether the Government has received report from the Committee appointed for study of the issues of EPF pensioners and if so, the details thereof;
(b)the details of the recommendations of the said Committee;
(c)whether the Government has initiated action for implementation of the recommendations of the said Committee and if so, the details thereof;
(d)whether the Government proposes to increase the minimum pension for EPF pensioners and if so, the details thereof; and
(e)whether the Government also proposes to stop the realisation of amount from the pension on account of commutation of pension after realising the commuted amount and if so, the details thereof?
ANSWER
MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT
(SHRI SANTOSH KUMAR GANGWAR)
(a) to (e): A statement is laid on the Table of the House.
STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) OF LOK SABHA STARRED QUESTION NO. 23 TO BE ANSWERED ON 24.06.2019 BY
SHRI N.K. PREMACHANDRAN REGARDING EPF PENSION.
(a) & (b): Yes, Sir. The Committee appointed for Evaluation and Review of the Employees’ Pension Scheme, 1995, headed by Additional Secretary, Ministry of Labour and Employment has submitted the report on 21st December, 2018. The report inter-alia has given observations/ recommendations on the following issues:
Increase of Minimum Monthly Member Pension
Period over which the Average Pensionable Salary is calculated
Restoration of commuted value of pension
Re-introduction of the provision for commutation of pension
Restoration of the provision of Return of Capital
Linking the monthly pension with cost of living index
Issues of payment of pension on higher/actual wages to employees of exempted establishments.
As far as pension on higher wages is concerned, the issue is sub-judice.
(c): The consultation process on the recommendations/observations on the Committee’s report has been initiated with Employees’ Provident Fund Organisation (EPFO) and Central Board of Trustees (CBT). CBT is a tripartite body representing trade unions, employers besides representatives of Central and State Governments.
(d): The decision on increase of minimum pension for EPF is dependent on the outcome of the consultation process and has impact on Budgetary resources of the Government as the Committee has recommended that increase in pension has to come from the Budgetary resources.
(e): No decision has been taken to restore the commuted value of pension, as it has implications on sustainability of the funds under Employees’ Pension Scheme, maintained by EPFO.
As
regards Employees Pension Scheme (EPS), 1995, a minimum pension of Rs.
1,000/- per month has been prescribed with effect from 01.09.2014 for
the pensioners under Employees Pension Scheme (EPS), 1995.
In the
case of Atal Pension Yojana (APY), depending upon the pension plan
selected, each subscriber under APY shall receive a guaranteed minimum
pension of Rs. 1000 per month or Rs. 2000 per month or Rs. 3000 per
month or Rs. 4000 per month or Rs. 5000 per month, after the age of 60
years until his/her death. If the actual returns during the accumulation
phase are higher than the assumed returns for minimum guaranteed
pension, such excess will be passed on to the subscriber. As such, the
minimum pension depending upon the pension plan selected by the
subscriber is fixed under the APY. Under National Pension System (NPS),
there is no ceiling fixed for minimum pension.
Further, a High-Empowered Monitoring Committee has been constituted for complete evaluation and review of the EPS, 1995.
There
is no provision for Dearness Allowance in EPS, 1995, as it is a
self-funded scheme with fixed contributions. Further, Dearness Allowance
is not applicable under NPS and APY as the pension under both depends
upon the accumulated corpus at the time of exit which is market linked.
This
information was given by Shri Santosh Kumar Gangwar Union Minister of
State (I/C) for Labour and Employment in written reply to a question in
Lok Sabha today.
Change of date of birth of members of Employees
Pension Scheme 1995
Employees Provident Fund Organisation
Ministry of
Labour & Employment. Government of India
Bhavishya Nidhi Bhawan
Bhikaiji Cama Place. New
Delhi 110066
No. Pension-l/Instructions/Guidelines/2017/20825
Date. 12 DEC 2017
To
All ACCs (Zonal Offices)
All Regional P.F.
Commissioner(In-charge of Regions).
Sub: Change of Date of Birth of Employees
Pension Fund Members- reg.
Ref: (i) Head
Office letter No. pension-3/8/OR/l/2005/69869 dated
12.12.2006
(ii) Head Office letter No. Pension-
I/Instructions/Guidelines/2006/l 1900 dated
07.10.2006
(iii) Head Office letter No. Pension-
II/Instructions/Guidelines/2016-17/33314 dated
10.03.2017
(iv) Head Office letter No. Pension-
l/Instructions/Guidelines/2017/8351 dated 07.08.2017
(v) Head Office letter No. Pension-
I/Instructions/Guidelines/2017/11518 dated 04.09.2017
Sir.
Please
refer to this office circulars cited under reference.
Further it is to
inform that in the meeting on fraud analysis and
management in EPFO held
on 08.12.2017 at Head Office it was decided to follow
the following
process for change of date of birth of members of
Employees Pension
Scheme 1995-
(i) In case the correction required in
date of birth is upto plus or minus one year, Aadhaar
will be accepted
as a valid document for date of birth.
(ii) In case the correction
required in date of birth is more than one year. then
in addition to
Aadhaar. other valid documents will have to be
submitted(viz..
matriculation certificate. certificate issued by
Registrar (Birth).
Passport etc). The concerned member should be intimated
for submission
of additional valid proof of birth in such cases while
applying
online/mobile/offline.
2. It is requested
to strictly adhere to the aforementioned
instructions.
[This issues with the approval of CPFC]
(R.M. VERMA)
Addl. Central P.F. Commissioner- I
(Pension)
Furnishing of Aadhaar mandatory for final settlement of Pension claims
Ministry of Labour & Employment
Press Information Bureau,
Government of India
02-March, 2017
The
EPFO has clarified that obtaining of Aadhaar should be mandatory for
the time being only for final settlement of Pension and not in withdrawl
cases. The EPFO had extended the date of submission of Aadhaar Number
authentication by the members of Employees’Pension Scheme 1995 upto 31st
March 2017.
However, news item appearing in few dailies suggested
that Aadhaar is not required in settlement of pension claims.
Accordingly, the EPFO reiterated that the requirement of submitting
Aadhaar is not insisted for the time being only in withdrawal benefit
cases under Employees Pension Scheme, 1995. Furnishing of Aadhaar is
still mandatory for final settlement of pension and scheme certificate
cases.
Press Information Bureau
Government of India
Ministry of Labour &
Employment
19-December-2016 16:54 IST
Shri Bandaru Dattatreya chaired the 215th meeting of the Central Board of Trustees
(EPF)
CBT recommends 8.65% interest on EPF to its subscribers for the year 2016-
17
The
Minister of State for Labour and Employment (Independent Charge) Shri
Bandaru Dattatreya chaired the 215th meeting of the Central Board of
Trustees (EPF) in Bengaluru today.
Following are the key decisions of the Board.
1.
The Board adopted the 63rd Annual Report on the work and activities of
the EPFO for the year 2015-16 for placing it before the Parliament.
2.
Paragraph 60(1) of Employees’ Provident Funds Scheme 1952, requires
EPFO to credit to the account of each member interest at such rate as
determined by the Central Government in consultation with the Central
Board. The interest is credited to the members account on monthly
running balances basis with effect from the last day in each year.
Interest rates are dependent on return on investments done following the
pattern of investment prescribed by the Central Government from time to
time under Para 52 of the Scheme.
To recommend the rate of
interest for the year 2016-17, the status of estimated amount to the
credit of the members as on 01.04.2016, budget estimates (BE) of the
Contributions and Withdrawals during 2016-17 and the estimated income
from the investment holdings are taken into consideration. Interest
income from Provident Fund investments for the year 2016-17 has been
estimated mainly on the basis of interest income received/receivable in
the financial year 2016-17 including surplus from previous year of Rs
410 crore. It may be noted that the last year income included a surplus
from previous year of Rs 1604 crore.
Taking into account relevant
factors, the Central Board decided to recommend 8.65% interest to its
subscribers for the year 2016-17. Roughly 17 crore subscribers’ accounts
will be updated with this interest rate upon acceptance by the
Government.
3. Enrolment and Establishment coverage campaign 2017
This special campaign will be run in the following manner:
For
effective monitoring and implementation the Zonal Addl. CPFCs shall
lead the campaign. District Offices of EPFO will be activated and
sufficient number of officers will be exclusively engaged.
Meetings with
the stakeholders namely Employer & Employee associations and State
Governments will be held to make it a success. During the campaign wide
publicity of PMRPY and PMPRPY benefits will also be undertaken. Online
enrollment facilities to workers will form a key feature of the
campaign.
Window will be provided from 01.01.2017 till 31.03.2017.
Following recommendation will be made for approval of the Government.
i.
A nominal rate of levy of damages from the establishment for payment of
contribution for the past period during the campaign for enrolment will
be Rs one (Rs.1) per annum.
ii. Any employer during the campaign
period, may send declaration for membership of the employees who were
required or entitled to become members of the fund on or after the 1st
day of April, 2009 but before the 1st day of January, 2017 who could not
be enrolled for any reason.
iii. For the declaration made under
this campaign, the employer shall be responsible to remit the
contributions and interest payable in accordance with the provisions of
the Act and the Schemes read with special provisions notified by the
Central Government for enrolment campaign.
iv. No administrative
charges will be leviable for the past period in respect of the employees
enrolled during the campaign. The necessary amendments will be carried
out under the relevant provisions of EPF & EDLI Scheme
v. The
interest of workers enrolled under the campaign will be fully protected
and they shall be eligible to get all eligible interest and benefits as
laid down in the Schemes.
vi. To have uniform and nominal rate of
levy of damages from the establishment for payment of contribution for
the past period during the campaign for enrolment shall be fixed at Rs
one (Rs.1) per annum. Enabling provision shall be inserted under para
32(a) of the EPF Scheme 1952 and under para (5) of Employees Pension
Scheme, 1995 and para 8-A of EDLI Scheme, 1976.
This
campaign will be suitably staffed and resourced so that employers who
come forth to extend social security to their employees receive all
possible assistance from EPFO. The action will meet the twin objectives
of increasing the enrolment, extending social security benefits to all
workers and reducing litigation.
4. The Board approved a set of
guidelines for streamlining process of surrender of exemption granted to
establishments. Surrender of exemption is a situation where an
establishment requests to discontinue the exemption granted to it. As
the Act and Scheme is silent regarding the procedure of surrender of
exemption by an establishment, the decision assumes importance in
helping ease of doing business.
5. The Supreme Court in SLP
no.33032-33033 in the matter of R. C. Gupta & others has passed
certain orders of credit of amounts in the EPF accounts to the previous
accounts of employees in respect of wages more than the statutory wage
limit. The orders are to the effect that if amounts exceeding statutory
wage ceiling have been credited to EPFO, the classification thereon
shall be at the joint option of employers and employees. In accordance,
the Central Board approved a proposal for facilitating compliance. The
8.33% of the employer’s contribution proportionate to the salary of
employees in excess of Rs.6500/- shall now be credited to the pension
scheme along with the interest accrued in the provident fund account The
employees however shall be required submit joint application along with
their employer wherever the same has not been done. This will be
applicable only in those case where the members/pensioners have
contributed on higher wages than the statutory wage ceiling of Rs.6500/-
with or without exercise of option prior to the issue of notification
for increase of wage ceiling to Rs.15000/- effective from 01.09.2014.
6.
The administration cost of the Employees’ Provident Fund (EPF) and
Employees’ Deposit Linked Insurance Scheme (EDLI), 1976, is met from the
administrative and inspection charges collected from the employers of
un-exempted and exempted establishments. No charges however are levied
to run Employees’ Pension Scheme (EPS), 1995.
The Central
Government in consultation with the Central Board of Trustees, EPF fixes
the administrative charges from time to time. The administrative
charges were last reduced from 1.10% to 0.85% with effect from 1st
January, 2015.Considering the need to promote the “Ease of Doing
Business in India” and to make Indian business more competitive, and in
response to the financial efficiency gained by EPFO, the Central Board
decided to recommend further reduction of administrative charges to 0.65
%. It also recommended to abolish administrative charges levied in
implementing the EDLI Scheme, 1976 passing on the benefits of efficiency
and computerisation to employers. The Central Board also decided to
constitute a sub-committee of CBT with members drawn from employees and
employer representatives to make a pragmatic study of employment trends
for next 10 years and recommend appropriate administrative charges to
the Central Board.
7. The Chairman, CBT and the Minister of State
for Labour and Employment (Independent charge) announced that
Organisational Restructuring has been approved by the Union Government
for implementation. This includes Cadre Restructuring which will ensure
career progression of 20,000 staff/officers of EPFO. The Minister
announced that this will be implemented as a New Year gift.
Though a majority of organised
workers are covered under the Employees’ Pension Scheme (EPS) 1995,
there is still very low transparency level. Many readers might not have
even heard about it because EPS is not a separate scheme. It is just an
add-on to the Employee Provident Fund (EPF) scheme and all EPF members
also automatically become EPS members.
The EPS is plagued with several
problems. First, the pension provided by it is very low (i.e. minimum
pension under EPS scheme now is only Rs 1,000 per month). As per the
current structure, pension is fixed based on the formula given below:
Average salary for the last 5 years x No of years completed in service
70 All EPF members are eligible for pension after 10 years of
contribution to EPS. The pension from EPS is low because the
contribution is also low. At present, employees don’t contribute towards
EPS. The employer contributes 8.33% of salary ( i .e. basic + Dearness
Allowance) towards EPS, the definition of salary here is restricted to
Rs 15,000 for employees whose salary (i.e. basic + DA) is above this
limit.So for them, the EPS contribution will be restricted to Rs 1,250
per month or Rs 15,000 per annum.
The Rs 15,000 restriction comes
at the time of pension calculation as well. If your salary (basic + DA)
is above that, pension will be computed only on Rs 15,000. So the
maximum pension one can get now (assuming 35 year service) is Rs
7,500.There are reports about EPFO (Employees Provident Fund
Organisation) allowing members to contribute more voluntarily to the EPS
for getting enhanced benefits after retirement. However, EPS
subscribers will be ready to increase their contribution only if the
pension is based on the contribution made by the employee throughout the
period and not on the number of years last drawn salary . Second, this
small pension from EPS (i.e. placed now between Rs 1,000 and Rs 7,500),
is not inflation linked like pension for government employees, who
joined service before 2004. Since the cost of living increases due to
inflation, this “small pension“ now will become “smaller“ in later
years.
Third, while employees are
complaining about low pension from EPS, the scheme is battling huge
deficit. This is because there is no direct linkage between the
contribution made by employees and the pension received by them. As of
now, EPS is working on the base of new contribution -i.e. contribution
from new employees are used to pay the pension for retired ones.Though
this may be sustainable for some time because of the demographic
dividend in India (i.e. large number of youngsters getting into work
force compared to few retired ones), this will not be sustainable in
long term. This is because of the expected demographic profile change
and the change in employment structure (i.e. more and more companies are
hiring people on contract, so they may be outside the EPS ambit).
Government doesn’t reveal actuarial valuation of pension liabilities
from EPS on regular basis, so only estimates are available on its
deficit figures -assumed to be more than Rs 50,000 crore.In addition to
cleaning up this mess, government should also release this deficit on
regular basis, at least on annual basis, for the sake of transparency .
As per Para 12(1) of the Employees’ Pension Scheme (EPS), 1995, a member shall be entitled to:
(a) Superannuation pension if he has rendered eligible service of 10 years or more and retired on attaining the age of 58 years.
(b) Early pension, if he has rendered eligible service of 10 years or more and retired or otherwise ceases to be in the employment before attaining the age of 58 years.
In such cases, the amount of pension shall be reduced at the rate of 4 per cent for every year the age falls short of 58 years.
This information was given by Shri Bandaru Dattatreya, the Minister of State (IC) for Labour and Employment, in reply to a question in Lok Sabha today.
The Government has notified a minimum pension of Rs. 1000/- per month to the pensioners under Employees’ Pension Scheme (EPS), 1995 vide Notification No. G.S.R. 593 (E), dated 19th August, 2014 effective from 01.09.2014 for the year 2014-15 which is continued beyond March, 2015 without any break.
However, no proposal is under consideration of the Government at present for providing inflation-linked Dearness Allowance (DA) to pensioners of EPS, 1995. The issue of index-linking of pension by fully neutralizing inflation was considered by the Expert Committee constituted by the Government in the year 2009 for review of EPS, 1995 and the same was found not feasible in the case of a funded scheme like EPS, 1995 wherein the contribution of the employer and Government is at a fixed rate of 8.33 per cent and 1.16 per cent respectively. Therefore, the value of benefits cannot be left open-ended by linking it with inflation which is variable.
This information given by Shri Bandaru Dattatreya, the Minister of State (IC) for Labour and Employment, in reply to a question in Rajya Sabha today.
EPFO settles 104.38 lakh claims in the current fiscal CBT, EPF recommended 8.8% rate of interest for the year 2015-16
Simplified Pension Claim Form 10D (UAN) and single page Pension
Payment Order (PPO) under Employees’ Pension Scheme, 1995 unveiled
New Delhi: While taking stock of the performance of EPFO in the month
of February 2016, Dr V.P. Joy, the newly appointed Central P.F.
Commissioner, noted that for the period April 2015 to February 2016,
EPFO settled 104.38 lakh claims. Out of these 40% were settled within 3
days and 78% within 10 days. 96% of the claims were settled within the
stipulated 20 day period.
During the month, 211th meeting of the Central Board of Trustees, EPF
was held at Chennai. The Board deliberated on the rate of interest for
the financial year 2015-16 and recommended 8.80% interest on the PF
balances in members’ accounts. Last year, the rate of interest was
8.75%.
A Simplified Pension Claim Form 10D (UAN) and single page Pension
Payment Order (PPO) under the Employees’ Pension Scheme, 1995 was also
unveiled by the Union Labour & Employment Minister (Independent
charge) at the conclusion of the Board meeting. The single page PPO
format is simple and more comprehensible to members / pensioners. This
attempt is towards the rationalization and simplification of forms in
line with the initiatives of the Government. At present, the simplified
10D-UAN claim form is meant to be used only by a member who has an
activated Universal Account Number. Other pre-requisites are filing of
details in Form 11(New), Aadhaar Number and Bank Account details in the
UAN portal. The nominations with Aadhaar numbers should also be
available in the UAN portal. Through this Form, service to a member can
be done directly without any requirement of attestation by the employer.
Both the simplified PPO format and claim form will be implemented from
01.04.2016.
In order to boost the process of seeding the Universal Account Number
(UAN) with KYC (eg. PAN, bank account details, Aadhar) that enables
enhanced services from EPFO, an “Incentive Scheme” has been launched for
the employers. Under this scheme a claim refund of upto 10% of
administrative charges payable to EPFO can be claimed upon completing
specified tasks (furnishing member information and digitally
authenticated KYC details). The Scheme shall be in operation for one
year, beginning 1st January 2016 to 31st December, 2016.
The age of superannuation in EPF Scheme, 1952 was also revised from
erstwhile 55 years to 58 years to align it with the age of
superannuation in Pension Scheme (EPS 1995).
The month of February 2016 saw EPFO redressing more than 20,000
grievances leaving only 3,083 grievances pending. This translates into
82% of these grievances remaining pending for less than 7 days.
BHARAT SANCHAR NIGAM LIMITED (A Govt. of India Enterprise)
NO.500-85/CA-II/BSNL/EPF/2011/Vol.VI
Dated 19.01.2016
To,
The IFAs,
All Circles
BSNL
Sub.: Various Gazette Notifications issued by EPFO from Time to Time
This office has been receiving queries regarding Employees Pension Scheme.
In this regard, it is informed that EPFO vide its letter no.
Actuarial / 18(2)2008/ Vol.III/7738 dated 29.08.2014 (copy enclosed) has
already clarified that henceforth, EPS will apply only to EPF members
whose pay at the time of becoming PF member is not more than Rs.15000/-
per month on or after 01.09.2014. The entire employer and employee
contribution shall remain in the Provident Fund and no diversion to EPS
shall be made for all new PF members on or after 01.09.2014 having
salary more than Rs. 15000/- at the time of joining.
In this connection, it is mentioned that this office has already
issued instructions to act in accordance with the Gazette Notifications
issued by EPFO, from time to time, without waiting for endorsement from
the Corporate Office as the non compliance of the EPF guidelines attract
penal provisions.
It is further mentioned that suitable action may be taken by the
circles for rectification of any erroneous deduction made and deposited
with EPFO under the EPS head for the employees covered under the above
mentioned letter of EPFO dated 29.08.2014.
All BSNL units are hereby requested to kindly take necessary action in accordance with the instructions issued by EPFO.
Encl: As above
(V.M.Gupta)
Dy. General Manager (CA-III)
EMPLOYEES PROVIDENT FUND ORGANISATION (Ministry of Labour & Employment, Govt. of India) Head Office
Bhavishya Nidhi Bhawan, 14, Bhikaiji Came Place, New Delhi – 110 066.
No. Actuarial/18(2)2008/Vol.III/7738
Dated: 29.08.2014
To
All Addl. Central P.F. Commissioners (Zones)
All Regional P.F.Commissioners (In-Charge of Region)
Sub: Gazette Notification providing for increase in wage
ceiling under EPS 1995 from Rs. 6500 to Rs.10000/- which shall come into
force on and from the 1st day of Sept 2014.
Sir.
This is in continuation of this office circular No Actuary/l
8(2)2008/ Vol.111/5905 dated 23.07.2014 wherein it was informed that the
Employees’ Pension Scheme 1995 is being amended to increase the wage
ceiling from Rs.6500/- per month to Rs. 15,000/- per month in the
Employees’ Pension Scheme, 1995.
2. The proposed amendments have since been noti red vide Gazette
Notification No. GSR 609 (E) which shall come into force on and from the
1st day of September, 2014 (Copy of notification enclosed).
3. Accordingly, with effect from the 1st day of September, 2014, the
pensionable salary for all cases of exit/death on or after 01.09.2014,
for calculating pension shall be the average monthly pay drawn during
the contributory period of service in the span of 60 months preceding
the date of death/exit from the membership of the Employees” Pension
Fund. The pensionable salary shall be calculated on pro-rata basis
separately for the period up to 31.08.2014 up to wage ceiling of
R.6,500/- per month and for the subsequent period upto the wage ceiling
of Rs.15,000 per month. Similarly. the Withdrawal Benefit shall be based
on the weighted wages at different wage ceilings. As already informed
necessary amendments in the applicable on software are being carried out
and the necessary software shall be released by I.S. Division at the
earliest.
4. Accordingly, requisite steps may be taken so hat full details of
wages for 60 months are available to settle the pension claims in
accordance with the proposed modification. In this regard, Form 10-C
& Form 10 D are also being redesigned to incorporate the above
changes and shall be circulated soon. However in the meantime wage
details be obtained by attaching additional sheet or giving details of
60 months of wages along with Form 10-D in respect of all members having
date of exit from EPS 1995.
5. The members having date of exit from EPS, 1995 on account of
superannuation/option date for commencement of early pension etc. prior
to 01.09.2014 shall get Pensionary benefits on the basis of the existing
pensionable salary calculations ie by taking 12 months average.
6. Further, with effect from 01.09.2014, wherever employer &
employees have opted to contribute on salary exceeding Rs.6,500/- per
month such employer & employees will have to exercise a fresh option
to contribute on salary exceeding Rs.15,000/- per month subject to the
condition that such member would have to contribute the Government’s
share of contribution @ 1.16% on the salary exceeding Rs.15,000/- per
month from his/her share of contribution. The fresh Option is to be
exercised within a period of 6 months. It is essential to know with
certainty the employee who are currently permitted to contribute to EPS
on higher wages, so that fresh options can be called for. Accordingly,
you may immediately flag all such cases of contribution on salary
exceeding Rs.6,500/- per month and obtain fresh options in a time bound
manner. It may be made known to the existing optees that if the fresh
option is not exercised it shall be deemed that the employee has not
Opted in allowing contribution over age ceiling and the contributions to
Employees Pension Fund made above the wage ceiling in respect of the
member shall be diverted to the Provident Fund account of the memer
along with interest as declared under the Employees’ Provident Fund
Scheme from time to time.
7. Furthermore, with effect from 01.09.2014 the provisions for
contribution on higher salary has been deleted and as such no new
options can be allowed to any member of EPS, 1995 on and after
01.09.2014.
8. As EPS will henceforth apply only to EPF members whose pay at the
time of becoming PF member is not more than Rs. l5,000/- per month on or
after 01.09.2014 the entire employer and employee contribution shall
remain in the Provident Fund and no diversion to EPS shall be made for
all new PF members on or after 01.09.2014 having salary more than
15,000/- at the time of joining. This must be ensured as any negligence
on this issue may lead to unwarranted litigations.
9. The above actions may be taken without any deviation and officer
in charge shall be responsible for compliance of above directions under
his jurisdiction.
Increasing Pension Limits Under Employees Pension Scheme
Ministry of Labour & Employment
09-March, 2015 15:00 IST
The
Government is not considering to enhance the age limit for Employees
Pension Scheme (EPS).The Pension implementation Committee (PIC) has
recommended to increase the short service pension entitlement age from
50 years to 55 years. The proposal is under consideration of the Central
Board of Trustees (CBT),Employees’ Provident Fund (EPF).The proposal,
if accepted is likely to decrease the reduction of pension due to short
service.
This was stated by Shri Bandaru Dattatreya, the Minister
of State(IC) for Labour and Employment in response to a written question
in Lok Sabha today.
Government okays salary cap hike for EPF; threshold for savings raised from Rs 6,500 a month to Rs 15,000
NEW DELHI: Employees earning upto Rs 15,000 a month will soon come
under the Employees’ Provident Fund (EPF) net, with the Narendra Modi
government approving a hike in the threshold for mandatory PF savings
from Rs 6,500 a month to Rs 15,000.
Though the Manmohan Singh government had approved the hike in the EPF
threshold this February after years of deliberations, the change
couldn’t be notified before the election code of conduct kicked in.
Another UPA decision to assure a minimum monthly pension of Rs 1,000
for members of the employees’ pension scheme run by EPFO, in its final
weeks in office, was also not notified before the polls.
Ministry officials had sought a fresh approval on the salary ceiling
hike from the new minister for labour and employment Narendra Singh
Tomar.
“The minister has approved the higher salary ceiling for mandatory
EPF savings, and we will issue a notification soon for it to become
effective,” said a senior government official aware of the development.
The ministry is also learnt to be examining if the minimum Rs 1,000 pension promise is sustainable.
The finance ministry, which had approved the pension promise with great
reluctance and several conditionalities, had only provided funds to
finance the bonanza for 2014-15.
At a board meeting in February, officials had warned that the pension
assurance may have to be rolled back next year as there was no funding
support beyond the first year. But their concerns were over-ruled by the
previous labour minister Oscar Fernandes, who was the board’s chairman.
The Employees’ Provident Fund Organisation or EPFO oversees the
retirement savings of over 8 crore members at present and the number
could go up sharply as those earning between Rs 6,500 and Rs 15,000 will
come under its fold once the new rules are notified and implemented.
The EPFO’s present ceiling for statutory contributions is a mere Rs
6,500 per month – lower than the minimum wage prescribed across the
country.
Twenty-four percent of an employee’s salary (up to the ceiling) is mandatorily deducted and parked with the PF office.
