Labour Committee asks Centre to Increase Minimum PF Pension

The Parliamentary Standing Committee on Labour has urged the Centre to revise the ₹1,000 minimum pension provided by the Employees’ Provident Fund Organisation (EPFO) under the Employees’ Pension Scheme.

About Employees’ Pension Scheme (EPS)

EPS is a social security scheme of EPFO which provides pension benefits to employees in the organized sector. It was launched in
Eligibility: Employees who are members of the Employees’ Provident Fund (EPF) are automatically enrolled in EPS.
Under EPS, the employer contributes 8.33% of the employee’s salary (subject to a wage ceiling – currently ₹15,000) towards the pension scheme.
The Central Government contributes an additional16% of the employee’s salary. Employees do not make direct contributions to EPS, their contributions are directed entirely to the EPF.

About EPFO

It is a statutory body that came into existence under the Employees’ Provident Fund and Miscellaneous Provisions Act, of 1952.
The administration of this Act and its associated schemes falls under the purview of a tripartite body known as the Central Board of Trustees,Employees’ Provident Fund.
- The CBT comprises representatives from various sectors, including the government (both central and state), employers, and employees.
It is one of the World’s largest Social Security Organisations in terms of clientele and the volume of financial transactions undertaken.
It is under the administrative control of the Ministry of Labour and Employment, Government of India.

UPSC PYQ

Q. With reference to casual workers employed in India, consider the following statements: (2021)

All casual workers are entitled for Employees Provident Fund coverage.
All casual workers are entitled for regular working hours and overtime payment.
The government can by a notification specify that an establishment or industry shall pay wages only through its bank account.

Which of the above statements are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(d) 1, 2 and 3

Answer: B