Modi govt likely to give big Pension bonanza to EPFO subscribers: Sources

The government may hike the minimum pension of EPFO Subscribers, sources said.

New Delhi: After announcing mega pension scheme for 42 crore unorganised sector workers in the Interim Budget 2019, the Narendra Modi government might soon give big pension bonanza to Employees' Provident Fund Organisation (EPFO) subscribers, sources told Zee Media.

The government may hike the minimum pension of EPFO Subscribers, setting the benchmark at Rs 3,000, sources told Zee Media. Currently, thousands of pensioners covered under the EPF-95 scheme, run by the EPFO, get Rs 1,000 at present.

Finance Minister Piyush Goyal presenting the Interim Budget 2019 last week announced unorganised sector workers with monthly income upto Rs 15,000 by assuring monthly pension of Rs 3,000 after reaching age of 60 years.

An unorganised sector worker joining pension yojana at the age of 29 years will have to contribute only Rs. 100 per month till the age of 60 years. A worker joining the pension yojana at 18 years, will have to contribute as little as Rs. 55 per month only. The Government will deposit equal matching share in the pension account of the worker every month.

Sources told Zee Media that an announcement regarding the the revised EPF pension may be announced before elections.

Sources also said that the Labour Ministry has appealed the Finance Ministry to come up with a decision regarding this soon.

The government pays 8.33 percent of basic wages as employers' contribution toward Employees' Pension Scheme (EPS) for other sectors and the firms are paying 3.67 percent as their share of contribution towards Employees Provident Fund under the PMRPY.

The EPFO presently covers 190 industries (mentioned in schedule 1 of the EPF Act) with over 20 crore accounts in over 11.3 lakh covered establishments.