Employee Pension Scheme received’t be linked to inflation index

New Delhi: There isn’t any plan to hyperlink staff’ pension scheme (EPS) with the inflation index, the union labour ministry knowledgeable the parliament Wednesday and stated that an skilled committee has not beneficial such a transfer. The ministry stated contemplating the calls for of EPS 1995 pensioners, the federal government had constituted a committee for full analysis and assessment of EPS, 1995. “The Committee didn’t suggest linking the month-to-month pension beneath EPS, 1995 with cost-of-living index as based on actuarial analysis linking EPS, 1995 with value index, i.e. D.A. aid will severely have an effect on the monetary well being of the Pension Fund,” the ministry said in a written reply in the parliament. The ministry also said that it has received representations individually and collectively from EPS pensioners to hike the basic minimum pension but did not give an answer whether it plans to hike it or not. “Representations have been received from individual pensioners as well as pensioners associations for increase of minimum pension under the Employees’ Pension Scheme (EPS), 1995 with reference to the recommendations of the Koshiyari Committee. The Government has, for the first time, started providing a minimum pension of Rs.1000/- per month to the pensioners under EPS, 1995 from 01.09.2014 by providing additional budgetary support keeping the widespread demands in addition to the budgetary support of 1.16% of wages of the member by the Government,” the ministry stated in a written assertion however didn’t give readability on when it plans to extend it or not. To ensure, all EPF subscribers contribute to pension corpus however authorities offers incentive to these drawing a wage under the brink of Rs. 15,000 monthly. EPS is a part of the Employees provident Fund group. Every month of the 12% employer’s share of EPF deductions – 8.3% goes to the pension corpus. There has been a requirement to hike minimal pension to Rs. 3000 monthly from Rs.1000 now. The demand for Rs. 3000 pensions beneath EPFO gained momentum after authorities launched Prime Minister Shram Yogi Man-dhan (PM SYM) yojana in 2019 for casual employees. PM SYM assures a month-to-month pension of a minimum of ₹3,000 after attaining the age of 60. Subscribe to Mint Newsletters * Enter a sound e-mail * Thank you for subscribing to our e-newsletter.