Revision of EPF Pension

The Minister of State for Mines, Steel and Labour and Employment, Shri Vishnu Deo Sai has said that the Government has since approved a proposal for increase in wage ceiling for coverage under Employees’ Provident Funds & Miscellaneous Provisions Act, 1952 from Rs. 6,500/- to Rs. 15,000/- per month.

In a written reply in the Rajya Sabha today, Shri Vishnu Deo Sai has said that there is no proposal under consideration for revision of pensionable salary at regular intervals keeping in view the rate of inflation. The Government has approved a minimum pension of Rs. 1,000/- per month to the pensioners under Employees’ Pension Scheme (EPS), 1995. 

Interest Rate on EPF

The Minister of State for Mines, Steel and Labour and Employment, Shri Vishnu Deo Sai has said that the government has declared 8.75% interest on Employees’ Provident Fund (EPF) for the year 2013-14.

In a written reply in the Lok Sabha today, Shri Vishnu Deo Sai has said that return on EPFO fund cannot be compared with return on other Pension Schemes like New Pension Scheme (NPS). The declaration of the return on NPS is on the basis of the accounting policy prescribed by NPS which allows the Net Assets Value (NAV) to be declared on the basis of current market value of the investments, while EPFO follows the cost value of the investment for accounting its investment and return is declared on the basis of actual receipt of interest on the investments. The return on EPFO investments is fixed whereas the return on NPS is not fixed and fluctuates on daily basis depending on the prevailing market conditions.

The Minister said that presently the funds of EPFO are invested as per the pattern of investment notified by the Government in November, 2013 wherein only investments in corporate debt and Government bonds are allowed. There is no provision for investments in equities.

EPFO subscribers likely to get ‘Contribution Card’

The Employees’ Provident Fund Organisation’s trustees are likely to approve this month a proposal to provide ‘Contribution Card’ similar to a bank pass book to its around 50 million subscribers from April 1 this year. The retirement fund body will make it mandatory for every employer to provide this card to his employees. The card shall have details of account and will be updated every month. The proposal to provide ‘Contribution Card’ to subscribers from April 1, 2012, will be discussed at the meeting of the EPFO’s apex decision making body — the Central Board of Trustees’ (CBT) headed by the Labour Minister — on February 22, a source said.

Source: The Hindu Business Line