Union Government releases Rs 2,000 crore for Employees’ Pension Scheme
Union Government has released 2,000 crore rupees to Employees’ Pension Scheme (EPS), 1995 as its contribution for the year 2015-16.
This contribution is in addition to the 250 crore rupees contributed by the government as grant-in-aid in the EPS in order to provide minimum pension of 1,000 rupees to pensioners under the scheme.
The contribution of Union government has been calculated at a rate of 1.16 per cent of the monthly wages of the members contributing to the scheme.
In September 2015, Government had assured EPS pensioners a guaranteed minimum pension of Rs 1,000 per month. In order to meet this assurance it was necessary for the Government to infuse additional amount as grants-in- to sustain the continuance of the minimum pension.
Employers contribute nearly 8.33% of the monthly wages of the scheme members. Approximately 28 lakh pensioners including five lakh widows will get benefit from this scheme. (There are total 44 lakh pensioners).
Categories: Economy & Banking Current Affairs