EPFO Mulls New Pension Scheme For Formal Workers Above Rs 15,000 Basic Wage Band

EPFO is thinking of coming out with a new pension product for organised sector workers who are getting basic wages of more than Rs 15,000 per month

Retirement fund body employees provident fund organisation (EPFO) is thinking of coming out with a new pension product for organised sector workers who are getting basic wages of more than Rs 15,000 per month and are not mandatorily covered under its employees' pension scheme 1995 (EPS-95).

At present, all those employees in the organised sector whose basic wage (basic pay plus dearness allowance) is up to Rs 15,000 per month at the time of joining service are mandatorily covered under EPS-95.

"There has been demand for higher pension on higher contributions among the members of the Employees' Provident Fund Organisation (EPFO). Thus, it is under active consideration to bring out a new pension product or scheme for those whose monthly basic wages are more than Rs 15,000," a source privy to the development said.

As per the source, the proposal on this new pension product could come up for discussion in the meeting of EPFO's apex decision making body Central Board of Trustees (CBT) on March 11 and 12 at Guwahati.