Union Government on 28 August 2014 notified enhancing the social security cover limit under the social security schemes run by the Employees Provident Fund Organisation (EPFO) - the retirement fund manager of the Union.
As a result, all the employees covered under the schemes run by EPFO now will be entitled to:
Minimum monthly pension of 1000 rupees under Employees Pension Scheme -1995 (EPS-95). This would benefit 28 lakh pensioners including 5 lakh widow pensioners who used to get less amount.
Enhanced wage ceiling of 15000 rupees from 6500 rupees to become the subscriber of EPFO. This would bring 50 lakh more workers under the domain of social security schemes.
Enhanced maximum sum assured under the Employees’ Deposit Linked Insurance (EDLI) Scheme to 3 lakh rupees. Thus, the maximum sum assured under the EDLI is 3.60 lakh rupees which includes 20 percent ad hoc benefit over the prescribed amount under the notification.
The schemes will be implemented from 1 September 2014.
Employees' Provident Fund
The Employees’ Provident Funds came into existence with the promulgation of Employees Provident Fund Ordinance on 15 November 1951. Replaced by the Employees’ Provident Funds Act, 1952, it is now referred as the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952 which encompasses whole of Indian except Jammu and Kashmir.
The Acts and Schemes under Employees’ Provident Fund are administered by a board comprising of Central and State Government, employers and employees. This board administers provident fund, pension scheme and an insurance scheme for the workforce.
The Board is assisted by the Employees Provident Fund Organisation (EPFO) consisting of offices at 120 locations across the country.
The Board runs three schemes:
1. The Employees' Provident Funds Scheme 1952 (EPF)
2. The Employees' Pension Scheme 1995 (EPS-95)
3. The Employees' Deposit Linked Insurance Scheme 1976 (EDLI)
EPFO Commissioner: K K Jalan
If you have any Question/Point on the above information, please ask/discuss it in the Current Affairs Group
Who: Union Government
When: 28 August 2014