EPFO big update: Central Government can improve EPS-95
EPFO News: Currently, 12 percent of the salary (basic salary and dearness allowance) of EPFO members goes to the EPF account. At the same time, out of the 12 percent contribution of the employer, 8.33 percent goes to EPS-95, while the remaining 3.67 percent is deposited in the EPF account.
A major piece of information has come out about the Employees' Provident Fund Organization (EPFO). For more pensions, the Labor Ministry may allow more and more contributions to the subscribers or members of the Employees' Provident Fund Organization or EPFO. Here, the ministry is thinking that it can improve the EPS-95 or the Employees' Pension Scheme 1995.
Presently, 12 percent of the salary is being transferred to the EPF account, that too the basic salary and dearness allowance of the members of EPFO. On the other hand, 8.33 percent of the employer's 12 percent contribution is going to EPS-95, while 3.67 percent is deposited in the EPF account.
A Labour Ministry source said that if members contribute more to their EPS-95 account, they will get more pensions. Therefore, the ministry is considering options to allow more contributions to EPS. Employees may also be allowed to contribute to EPS-95 to increase 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 as per estimates, capital expenditure of Rs 1 crore creates three to six jobs. The source said that major infrastructure projects worth Rs 4.19 lakh crore have been approved and it is estimated that this will create more than 1.26 crore jobs.
