The government is mulling doubling the minimum pension under the Employees’ Pension Scheme to Rs 2,000 per month, a move that will benefit over 4 million workers.
Those part of the Employees’ Provident Fund Organisation (EPFO) automatically become subscribers to the pension scheme.
A high-level labour committee put forth a proposal to raise the pension, which is being “actively” considered by the finance ministry, two of the committee members told ET.
The government spends about Rs 9,000 crore per annum on pensions under the Employee Pension Scheme. This figure will go up to Rs 12,000 crore if the proposal is accepted. “It is very clear that with the existing kitty, it will not be possible to bear the additional burden on account of higher pension,” said one of the persons quoted above. “Hence, the ball is in the court of the finance ministry to decide if the government is willing to bear the cost.”
The committee, constituted last year under the additional secretary of labour, was asked to evaluate and review the Employees’ Pension Scheme, a senior government official said.
Source: Economic Times