EPFO: Big update regarding EPFO, central government can improve EPS-95
New Delhi| Important information has come to light regarding Employees Provident Fund Organization (EPFO). The Labor Ministry may allow more contributions to Employees’ Provident Fund Organization (EPFO) members for higher pension. To this end the Ministry is considering reforming the Employees’ Pension Scheme 1995 (EPS-95).
At present, 12 percent of the salary (basic salary and dearness allowance) of EPFO members goes to the EPF account. At the same time, 8.33 per cent of the employer’s 12 per cent contribution goes to EPS-95, while the remaining 3.67 per cent is credited to the EPF account.
A source in the Ministry of Labour says that, if members contribute more to their EPS-95 account they will receive a higher pension. Therefore, the Ministry is considering options to allow more contributions to EPS. Employees may also be allowed to contribute to EPS-95 to increase pension benefits under the revised framework.
The source said that apart from improving social security benefits, the Narendra Modi government is also focusing on employment generation in the country. He said that according to estimates, capital expenditure of Rs 1 crore creates three to six jobs. Major infrastructure projects costing Rs 4.19 lakh crore have been approved and are estimated to create more than 1.26 crore jobs, the source said.
