Mon. Sep 21st, 2020

Union Government released Rs. 2000 crore to Employees’ Pension Scheme, 1995

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The Union Government has
released a sum of rupees 2,000 crore to the Employees Pension Scheme (EPS),
1995 as its contribution for the year 2015-2016. The Union Minister of State for
Labour & Employment (Independent Charge) Shri Bandaru Dattatreya said that
this contribution is in addition to rupees 250 crore contributed by the Central
government as grant-in-aid in the EPS, 1995 for providing minimum pension of rupees
1000 to the pensioners of  EPS, 1995.

Since September 2014, EPS
pensioners have been assured of a guaranteed minimum pension of rupees 1000 per
month, therefore, it is necessary to infuse such additional amounts as
grant-in-aid by the Central Government to sustain the minimum guaranteed
pension.

Under the provisions of
EPS, 1995, the contribution of Central Government is calculated at the rate
1.16% of the monthly wages of the members contributing to the EPS, 1995. This
is in addition to the funding made available by the employers covered under the
Act who contribute 8.33% of the monthly wages of the members to the Scheme.

-Ministry of Law
and Justice
Source: Legal news India

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