Union Finance Ministry on 23 January 2014 approved a proposal to provide minimum monthly pension of 1000 rupees to workers of organised sector, under the Employees Pension Scheme 1995 (EPS-95). The proposal will be in effect from 1 April 2014 and will benefit around 27 lakh pensioners. The government will provide an additional contribution of over 1200 crore rupees to ensure minimum monthly pension.
Now it depends on the decision of Union Labour Minister, Oscar Fernandes to take it to the Cabinet for approval. At present the subscribers get 500 rupees per month despite working for 30 years.
Apart from this the Finance Ministry has also approved a proposal seeking raise of the basic wage ceiling under the Employees Provident Fund Scheme from the existing 6500 rupees to 15000 per month. Employees who get the basic wages more than 6500 rupees per month (including basic pay and dearness allowance) are not covered under the social security scheme run by EPFO. The Employee Pension Scheme is run by Employees' Provident Fund Organisation (EPFO).