EPFO Members may soon get a big gift from the Labor Ministry. Actually, the Labor Ministry can allow more contribution to the members of Employees Provident Fund Organization (EPFO) for higher pension. For this, the Ministry is considering reforms in the Employees' Pension Scheme 1995 (EPS-95). At present, 12 percent of the salary (basic salary and dearness allowance) of EPFO members goes into the EPF account. Out of the 12 percent employer's contribution, 8.33 percent goes to EPS-95, while the remaining 3.67 percent is deposited in the EPF account. A source said if members contribute more to their EPS-95 account, they will get more pension. Therefore, the Ministry is considering options to allow higher contribution in EPS.
Modi government is emphasizing on employment generation
Employees may also be allowed to contribute to EPS-95 to enhance pension benefits under the revised framework. The source said that apart from improving social security benefits, the Narendra Modi government is also focusing on employment generation in the country. He said that according to estimates, a capital expenditure of Rs 1 crore creates three to six jobs. Major infrastructure projects costing Rs 4.19 lakh crore have been approved and are estimated to create more than 1.26 crore jobs, the source said.
Instructions to activate UAN
The Ministry of Labor and Employment has directed the Employees' Provident Fund Organization (EPFO) to run a campaign in collaboration with employers and activate the Universal Account Number (UAN) of employees. In the first phase, employers will have to complete the process of UAN activation through Aadhaar-based OTP for all their employees joining in the current financial year by November 30, 2024, the ministry said in a release on November 21, 2024. It will start with the recently joined employees. After this he will have to complete the process for all the employees working with him.
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