The Ministry of Labor may allow the members of the Employees’ Provident Fund Organization (EPFO) to contribute more for higher pension. For this, the ministry is considering making improvements in the Employees’ Pension Scheme 1995 (EPS-95).
Let us tell you that currently 12 percent of the salary (basic salary and dearness allowance) of EPFO members goes to the EPF account. Out of the employer’s 12 percent contribution, 8.33 percent goes to EPS-95, while the remaining 3.67 percent is deposited in the EPF account.
What is the plan
A source said that if members contribute more to their EPS-95 account they will get more pension. Therefore, the ministry is considering options to allow more contribution 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 job creation in the country. He said that according to estimates, a capital expenditure of Rs 1 crore creates three to six jobs. The source said that major infrastructure projects worth Rs 4.19 lakh crore have been approved and it is estimated that this will create more than 1.26 crore jobs.
The Labor Ministry said this to EPFO
Recently, the Ministry of Labor asked the EPFO to focus on promoting IT infrastructure and capacity building preparations to launch the Employment Linked Incentive (ELI) scheme. Let us tell you that Finance Minister Nirmala Sitharaman had announced the launch of three employment-related schemes based on enrollment in EPFO in the Union Budget.
Three schemes for ELI were announced in the Budget 2024-25 under the Prime Minister’s package of five schemes and initiatives. Under this, a target has been set to create employment, skills and other opportunities for 4.1 crore youth in five years with an expenditure of Rs 2 lakh crore.
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