Provident fund ceiling raised, minimum pension fixed at Rs. 1,000 Wednesday Feb 05,2014

The Central Board of Trustees (CBT), the apex decision-making body of EPFO on Wed Feb 05,2014 -

• decided to raise the monthly wage ceiling to Rs. 15,000 from Rs. 6,500 by amending the Employee Provident Fund scheme, 1952 and

• to provide a monthly pension of minimum Rs. 1,000, a decision that will immediately benefit about its 28 lakh pensioners

• decided to reduce administrative charges from 1.10 % of the basic wage, including basic pay and dearness allowance, to 0.85 %

"The board has decided to approve the proposed amendments in the schemes to ensure that Rs. 1,000 minimum monthly pension under EPS-95 and also increased the wage ceiling to Rs. 15,000 per month," Labour Minister Oscar Fernandes, who chaired the CBT meeting, told

At present, workers getting basic wages, including basic pay and dearness allowance, of up to Rs. 6,500 are mandatorily covered under the ambit of Employees' Provident Fund Organisation (EPFO)

The pensionable salary will be calculated on the basis of average salary of the last 60 months instead of 12 months as provided in the EPS-95.

However, the proposed change in the methodology for computing pensionable salary was approved with a dissent note from the trade unionist members of the CBT.