Good news for organized sector employees: Modi govt likely to double minimum pension

The employees of organized sector in the country has a reason to cheer. If reports are to be believed, Narendra Modi government is mulling to increase the minimum pension for them. Quoting persons close to the development, a report in Mint stated that the Centre is considering doubling, or even trebling, the minimum monthly pension for retired organized sector employees. If this turns out to true, the move would benefit lakhs of pensioners. However, the government has to bear a relevant additional expense.

According to the publication, a three-member committee, constituted by the labour ministry three months ago, is of the opinion that the existing pension of ₹ 1,000 per month is too low. Though a final decision is yet to be taken, there is a strong view that worker’s minimum pension needs to go up. 

“The committee has suggested that the government should immediately announce ₹ 2,000 as minimum pension. The further enhancement up to ₹ 5,000 can be debated and arrived at over time. The government has a responsibility and, I think, the poor workers should be provided with an enhanced pension,” said Wig, who is also a central board member of the Employees Provident Fund Organisation, or EPFO.

Earlier this year it was reported that job creation slowed down in non-farm sectors during February as new member registrations with the EPFO for its various schemes declined to a four-month low of 4,72,075 during the month, according to the monthly data released by the retirement fund body on Wednesday. 

As many as 6,04,557 such members were registered in January 2018 and 5,57,633 in December 2017, the latest data by the Employees' Provident Fund Organisation (EPFO) about all non-zero contributors or new members that are registered with the body every month showed. 

The number of all non-zero contributors registered with the EPFO was 647,019 in November, 3,93,904 in October and 4,35,283 in September last year. 

The EPFO said that these estimates may include temporary employees whose contributions may not be continuous for the entire year.

All establishments across the country with 20 or more employees whose basic wages are up to Rs 15,000 are required to be mandatory covered under the social security schemes run by the EPFO. 

The EPFO manages social security funds of workers in the organised/semi organised sector in India and has more than 6 crore active members (with at least one month contribution during the year).

The maximum employment of 139,032 was generated in age bracket of 22-25 years in February, 2018 while in January, 2018, the highest number of new registered members were in 18-12 year age bracket. 

EPFO also said that it it will inform its subscribers if contributions are not deposited by their employers with the body for a given month in due time. 

(With inputs from agencies)