EPFO to provide minimum monthly pension of Rs1,000 from 1st September

The decision to fix pension entitlement of Rs1,000 under the EPFS-95 scheme will immediately benefit around 28 lakh pensioners who at present are receiving less than this amount

The Employees’ Provident Fund Organisation (EPFO) said it would start implementing its much awaited Rs1,000 minimum monthly pension and Rs15,000 higher wage ceiling social security schemes from 1 September 2014.

The government’s decision to fix pension entitlement of Rs1,000 under the Employees’ Pension Scheme 1995 (EPFS-95) will immediately benefit 28 lakh pensioners who get less than this amount at present.

The move to enhance the minimum wage ceiling for becoming a subscriber of EPFO to Rs15,000 per month is expected to bring about 50 lakh additional formal sector workers under the ambit of the PF body.

The government has also enhanced the maximum sum assured under Employees’ Deposit Linked Insurance (EDLI) Scheme to Rs3 lakh. The maximum sum assured under the EDLI works out to be Rs3.6 lakh including 20% ad hoc benefit over the prescribed amount under the notification.

This means that in case an EPFO subscriber dies, his family will be entitled to maximum sum assured of Rs3.6 lakh instead of existing Rs1.56 lakh.

The decision to provide the entitlement under EPS-95 was taken by the Union Cabinet in its meeting held on 28th February. However, it could not be implemented as the model code of conduct came into force after the general election dates were announced on 5th March. 

The decision will immediately benefit about 28 lakh pensioners, including 5 lakh widows. In all, there are 44 lakh pensioners under the EPFO scheme.

Source:http://www.moneylife.in/article/epfo-to-provide-minimum-mothly-pension-of-rs1000-from-1st-september/38592.html