EPFO approves Rs 1,000 minimum monthly pension

February 28, 2014

PensionNew Delhi, Feb 28: Trustees of retirement fund body EPFO Thursday approved a proposal to provide a monthly pension of minimum Rs 1,000, a decision that will immediately benefit about its 28 lakh pensioners.

The Central Board of Trustees (CBT), the apex decision making body of EPFO also decided to raise the monthly wage ceiling to Rs 15,000 from Rs 6,500 by amending the EPF scheme, 1952, so that more workers can be brought under its various social security programmes.

"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 reporters here.

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

According an EPFO official, the Labour Ministry will soon move proposal before the Union Cabinet for its approval for the Rs 1,000 minimum monthly pension as the government would have to make fund provisions for the purpose.

"We have also reduced the administrative charges paid by the employers. Their burden would increase with the increase in wage ceiling," the Minister said.

The board has also decided to reduce administrative charges from 1.10 percent of the basic wage, including basic pay and dearness allowance, to 0.85 percent.

Besides, the trustees have also approved a proposed change in the methodology of computing the pensionable salary.

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.

The Employee Provident Fund Organisation (EPFO) runs social security programmes Employees' Provident Fund Scheme 1952, Employees' Pension Scheme 1995 and Employees' Deposit Linked Insurance Scheme 1976.

"Unionists have opposed the proposed amendment to the methodology for computing pensionable salary. I have suggested use of average salary of 24 months for the purpose," D L Sachdev, a trustee, who is the All-India Trade Union Secretary said.

He said unionists also expressed reservations about the Finance Ministry suggestions to withdraw two year bonus under the EPS-95 provided to subscribers who render 20 years of pensionable service.

However, the CBT did not take any decision regarding bonus under Employee Pension Scheme, 1995 (EPS-95). The trustee also deferred a decision on the proposal to increase retirement age under the scheme to 60 years from 58 years.

At present, under EPS-95, the EPFO subscribers cease to be a member of EPS-95 after attaining the age of 58 years and can apply for fixation of his/her pension thereafter.

However, there is no age bar for contributing to the EPF and EDLI schemes run by the EPFO.

The government would have to provide an additional amount of Rs 1,217 crore to ensure the minimum pension of Rs 1,000 starting 2014-15. Pensioners are, therefore, expected to get benefit with effect from April 1 this year. The proposal has already been approved by the Finance Ministry.

The move to ensure Rs 1,000 minimum pension under EPS-95 will immediately benefit about 28 lakh pensioners including five lakh widows. There are about 44 lakh pensioners.

The decisions regarding wage ceiling, reduction in administrative charges for employers and change in the methodology for computing pensionable salary can be notified and implemented by the Labour Ministry.

The proposal for raising wage ceiling to Rs 15,000 is expected to bring in 50 lakh more workers under the ambit of schemes run by EPFO.

The minister also launched a software to monitor the compliance by the employers under the social security schemes run by the EPFO.

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News Network
April 11,2020

New Delhi, Apr 11: Congress leader Rahul Gandhi on hailed accredited social health activists, auxiliary nurse and midwives and anganwadi workers for their role in the fight against the coronavirus pandemic, saying they are "true patriots" who toil to keep communities safe in the midst of this grave crisis.

In an environment where fear and misinformation pose a bigger danger than the virus itself, community workers have a key role to play in educating people about the dangers of COVID-19 and the manner in which it is transmitted, Gandhi said.

In a message for Accredited Social Health Activists (ASHA), Auxiliary Nurse and Midwives (ANMs) and Anganwadi Workers, he said they are working with dedication and courage, putting their lives at risk, on the frontlines of the battle against the COVID-19 pandemic.

"The greatest form of patriotism is to serve our country in her hour of need. Our community workers are true patriots, our unsung heroes, who toil tirelessly away from the limelight, to keep our communities safe in the midst of this grave crisis," the former Congress chief said.

"As a nation, we owe them and their families a huge debt of gratitude for the tremendous personal sacrifices each of them is making. I hope that when this crisis is over their exemplary service will serve as a catalyst for deep-rooted change in their conditions of work," he said.

Gandhi said he salutes each and every community worker for their service to the nation and prays that they and their families will remain safe during this pandemic.

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News Network
February 18,2020

New Delhi, Feb 18: A Delhi court today sent Sharjeel Imam, who has been named as an "instigator" by the Delhi Police in its chargesheet on violent protests against the amended citizenship act at New Friends Colony near Jamia in Delhi last year, to judicial custody till March 3.

Sharjeel Imam was arrested on sedition charges last month.

The Delhi Police has filed a chargesheet before Chief Metropolitan Magistrate Gurmohina Kaur, naming Sharjeel Imam as an instigator of the violence.

It said it has attached CCTV footage, call detail records and statements of over 100 witnesses as evidence in the chargesheet.

The court had on Monday sent Sharjeel Imam to one-day custody of Delhi Police in the case.

Protestors had torched four public buses and two police vehicles as they clashed with police in New Friends Colony near Jamia Millia Islamia in Delhi during the demonstration against the CAA on December 15, leaving nearly 60 people including students, cops and fire fighters injured.

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News Network
February 28,2020

Feb 28: The best economic tonic for the coronavirus shock is to contain its spread and worry about stimulus later, said Raghuram Rajan, former head of the Reserve Bank of India.

There’s little central banks can do, and while more government spending would help, the priority should be on convincing companies and households that the virus is under control, he said.

“People want to have a sense that there is a limit to the spread of this virus perhaps because of containment measures or because there is hope that some kind of viral solution can be found,” Rajan told Bloomberg Television’s Haidi Stroud Watts and Shery Ahn.

“At this point I would say the best thing that governments can do is to really fight the epidemic rather than worry about stimulus measures that comes later,” said Rajan, who is currently a professor at the Chicago Booth School of Business.

The spread of coronavirus is pushing the world economy toward its worst performance since the financial crisis more than a decade ago.

Bank of America Corp. economists warned clients Thursday that they now expect 2.8% global growth this year, the weakest since 2009.

“We have moved from extreme confidence in markets to extreme panic, all in the space of one week,” said Rajan, who previously was chief economist at the International Monetary Fund.

The virus outbreak will force companies to rethink supply chains and overseas production facilities, he said.

“I think we will see a lot of rethinking on this, coming on the back of the trade disruption, now we have this,” Rajan said. “Globalization in production is going to be hit quite badly.”

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