Employees Pension Scheme

04 APR 2022

The has been framed by the Central Government in accordance with the powers conferred by section 6A of the Employees’ Provident Funds and Miscellaneous Provisions (EPF and MP) Act, 1952. The EPS-95 came into force on 19.11.1995. Review and revision of schemes is an ongoing process. The provisions of the EPS-95 are reviewed from time to time based on the recommendations of the Expert Committee and the High Empowered Monitoring Committee as well as taking into account the actuarial evaluation of the Employees’ Pension Fund. Some of the important amendments made in EPS-95 are as under:

• Increase in wage ceiling from Rs. 6500/- to Rs.15000 per month from 01.09.2014.
• Provision of a minimum pension of Rs. 1000 per month to the pensioners under EPS, 1995 from 01.09.2014 by providing additional budgetary support wherever the pension was falling short of Rs.1000 as per pre-defined formula for calculation of pension.
• Restoration of normal pension after completion of fifteen years from the date of such commutation, in respect of those members who availed the benefit of commutation of pension under the erstwhile paragraph 12A of the EPS, 1995, on or before 25.09.2008 vide notification G.S.R.132(E) dated 20.02.2020.

The Union of India and the Employees’ Provident Fund Organisation (EPFO) have challenged the judgement dated 12.10.2018 of Hon’ble Kerala High Court, which set aside the 2014 amendments to the EPS-95, in the Hon’ble Supreme Court. The Hon’ble Supreme Court vide its order dated 24.08.2021 in Special Leave Petition (C) Nos.8658-8659 of 2019 and other connected cases directed to refer the matters to a Bench of at least three Judges. The matter is now sub-judice.

The Code on Social Security, 2020 (36 of 2020), was notified on 29.09.2020, which subsumes 9 Central labours laws including the EPF and MP Act, 1952. Section 15 of the new Code envisages to frame various schemes including pension for the employees and their family members. However, the said Code has not yet come into force.

This information was given by the Minister of State for Labour & Employment, Shri Rameswar Teli in a written reply in Lok Sabha today.

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GOVERNMENT OF INDIA
MINISTRY OF LABOUR AND EMPLOYMENT

RAJYA SABHA

STARRED QUESTION NO. 177
TO BE ANSWERED ON 17.03.2022

DEMAND TO INCREASE MINIMUM PENSION UNDER EPF PENSION SCHEME

177. SHRI M. SHANMUGAM:

Will the Minister of Labour and Employment be pleased to state:

(a) whether Government is receiving demands from stakeholders like trade unions and public representatives for increasing the minimum pension under the EPF pension scheme;

(b) if so, the demands of the stakeholders and the response of Government;

(c) whether Government would consider positively the hike in minimum pension for the EPF holders, in view of rise in the cost of living index and hike in wages;

(d) if so, by when it is expected to be announced; and

(e) if not, the justifiable reasons for not increasing the minimum pension?

ANSWER

MINISTER OF LABOUR AND EMPLOYMENT
(SHRI BHUPENDER YADAV)

(a) to (e): Representations have been received from various stakeholders to increase the minimum pension under the Employees’ Pension Scheme (EPS), 1995.

The Employees’ Pension Scheme (EPS), 1995 is a ‘Defined Contribution-Defined Benefit’ Social Security Scheme. The corpus of the Employees’ Pension Fund is made up of (i) contribution by the employer @ 8.33 per cent of wages; and (ii) contribution from Central Government through budgetary support @ 1.16 per cent of wages, up to an amount of Rs.15,000/- per month. All benefits under the scheme are paid out of such accumulations. The fund is valued annually as mandated under paragraph 32 of the EPS, 1995 and as per the valuation of the fund as on 31.03.2019, there is an actuarial deficit.

Amount of member’s’ pension under the Scheme is determined taking into account the pensionable period of service and pensionable salary as per following formula:

Pensionable Service X Pensionable Salary
70

It is evident that the amount of pension is based on a predefined formula. However, the Government, for the first time, in the year 2014, provided a minimum pension of Rs. 1000 per month to the pensioners under the EPS, 1995 by providing budgetary support, which was in addition to the budgetary support of 1.16% of wages provided annually towards EPS to Employees’ Provident Fund Organisation (EPFO).

Considering the demands of Employees Pension Scheme (EPS), 1995 pensioners, the Government. constituted a High Empowered Monitoring Committee (HEMC) for complete evaluation and review of EPS 1995. The Committee considered the issue of dearness allowance under EPS, 1995 and has recommended, inter-alia, that linking the pension admissible under EPS 95 with cost of living index is not feasible in view of actuarial position.

– Rajya Sabha Q&A

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15 MAY 2020 5:14PM

Due to prolonged lockdown announced by the Govt. to control the spread of COVID-19 and other disruptions due to pandemic, establishments covered under EPF & MP Act, 1952 are distressed and unable to function normally and pay the statutory contributions in time.

Considering the difficulty faced by the establishments in timely deposit of contributions or administrative charges due for any period during lockdown, the EPFO has decided that such delays due to operational or economic reasons shall not be treated as default and penal damages should not be levied for such delay.

Circular dated 15.05.2020 has been issued to Field Offices of EPFO containing instructions to the effect that no proceeding shall be initiated for levy of penal damages in such cases which is available under TAB “COVID-19” on home page of EPFO website.

Also check: DA to be released immediately according to Delhi High Court judgment. Court case on DA, and the petitioner won

The aforesaid step shall ease the compliance norms for 6.5 lakhs EPF covered establishments and save them from liability on account of penal damages.

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10 APR 2020

Employees Provident Fund Organisation (EPFO), an statutory body under Union Ministry of Labour & Employment has processed about 1.37 lakh claims across the country disbursing an amount of Rs. 279.65 crore under a new provision especially formulated by amending the EPF Scheme to help subscribers fight Covid-19. The remittances of the moneys has already started taking place. The system as it stands today is processing all applications which are fully KYC compliant within less than 72 hours. Members, who have applied for claims in some other category, can also file claim to fight pandemic and depending upon the KYC compliance condition of each member, every effort is being made to settle claims at the earliest.

The provision for a special withdrawal from the EPF Scheme to fight Covid-19 pandemic is part of the PMGKY scheme announced by the government and an urgent notification on the matter was made to introduce a para 68 L (3) of the EPF Scheme on 28th March 2020. Under this provision non-refundable withdrawal to the extent of the basic wages and dearness allowances for three months or up to 75% of the amount standing to member’s credit in the EPF account, whichever is less, is provided. The member can apply for lesser amount also. This, being an advance, does not attract income tax deductions.

EPFO issues Directions for timely credit of monthly Pension to EPS Pensioners

Anticipating the huge surge in the demand, EPFO came out with acompletely new software which has been developed from scratch and a receipt module for on-line receipt of the claims was introduced within 24 hours and deployed on 29th March 2020. Further, the application was required to be in paperless form to curtail any physical movement in view of social distancing. It was decided to introduce a system of settling claims in auto mode directly by the system in respect of all such members whose KYC requirements was complete in all respects.

The COVID-19 pandemic has posed a serious threat and considering dire need of money in these trying times, it has been decided to process advance to fight COVID-19 pandemic on top priority.

Claims for availing advance to fight pandemic are filed online, necessitating every EPF account to be KYC complaint as pre-cursor. EPFO has relaxed date of birth correction criteria to ease KYC compliance enabling submission of claim to fight pandemic online. EPFO would accept the date of birth recorded in the Aadhaar card of a subscriber as a valid proof for rectification of the date of birth in PF records. All cases with variation in date of birth up to three years are now being accepted by EPFO.

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06 MAR 2020

As part of the ongoing efforts to improve India’s ranking in the Doing Business Report 2021, The Ministry of Labour & Employment has completed the reform to “Integrate process of registration for GST, EPFO, ESIC and Profession Tax for Maharashtra with company incorporation” in tandem with the MCA.

The reform has been completed by making the registration of new Public, Private Limited Companies and One Person Company for ESIC and EPFO mandatory through the Spice+ and AGILE-PRO eforms of MCA w.e.f., 15-02-2020. Registration for ESIC and EPFO for new companies as above has been stopped on Shram Suvidha Portal from 15.02.2020. A message to this effect is displayed on the Shram Suvidha Portal and the website of Ministry of Labour and Employment www.labour.gov.in as follows:

Also check: EPFO – Revised Transfer Claim Form 13

Registration for EPFO & ESIC for new Public& Private Limited Companies and One Person Company has been stopped on Shram Suvidha Portal from 15.02.2020.

With effect from 15.02.2020, new Public& Private Limited Companies and One Person Company shall get registration number for EPFO & ESIC on MCA portal (www.mca.gov.in) through Spice + and AGILE-PRO eforms) only at the time of incorporation.

However, the above new companies will have to comply with the provisions of EPF & MP Act, 1952, and ESI Act, 1948 when they cross the threshold limit of employment under the respective Acts.

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MORE THAN 39 LAKHS BENEFICIARIES ENROLLED IN PM-SYM AND MORE THAN 20,000 IN NPS- TRADERS

1,52,778 ESTABLISHMENTS COVERING 1,21,65,587 EMPLOYEES BENEFITTED UNDER PMRPY

30 DEC 2019

Ministry of Labour and Employment has taken a number of initiatives for bringing transparency and accountability through reforms and enforcement of Labour Laws, with the objective of strengthening the safety, security, health, social security for every worker and bringing ease of compliance for running an establishment to catalyze creation of employment opportunities. These initiatives include governance reforms through use of e-governance measures and legislative reforms by simplifying, amalgamating and rationalizing the existing labour laws into 4 labour codes. Two mega pension schemes were launched during the year for old age protection and social security of unorganized workers.

LEGISLATIVE INITIATIVES: LABOUR LAW REFORMS

Labour Codes: As per the recommendations of the 2nd National Commission on Labour, Ministry has taken steps for codification of existing Central labour laws into 4 Codes by simplifying, amalgamating and rationalizing the relevant provisions of the Central Labour laws. At present, the Ministry has been working on to simplify, amalgamate & rationalize the provisions of the existing Central labour laws into 4 Labour Codes.

(I) Labour Code on Wages: The Code on Wages, 2019 subsumes 4 existing Laws, viz. the Minimum Wages Act, 1948; the Payment of Wages Act, 1936; the Payment of Bonus Act, 1965; and the Equal Remuneration Act, 1976. It has been passed by both Houses of the Parliament and assented to by the President on 08.08.2019.

(II) Labour Code on Industrial Relations: The draft Labour Code on Industrial Relations subsumes the existing Laws viz. The Trade Union Act, 1926; The Industrial Employment (Standing Orders) Act, 1946; The Industrial Disputes Act, 1947. The Code has been introduced in the Lok Sabha on 28.11.2019.

(III) Labour Code on Social Security & Welfare: The draft Code on Social Security subsumes 09 Labour Acts like: The Employees’ Compensation Act, 1923, The Maternity Benefit Act, 1961, The Payment of Gratuity Act, 1972, The Unorganized Workers’ Social Security Act, 2008 etc.

The Code has been introduced in Lok Sabha on December 11, 2019.

(IV) Labour Code on Occupational Safety, Health & Working Conditions: The Occupational Safety, Health & Working Conditions Code, 2019 subsumes the 13 Labour Acts like: The Factories Act, 1948, The Plantation Labour Act, 1951, The Mines Act, 1952, The Building and Other Constructions Workers’ (Regulation of Employment and Conditions of Service) Act, 1996 etc.

The Occupational Safety Health & Working Conditions Code, 2019 was introduced in the Lok Sabha on 23.07.2019. Presently, the Code has been referred to the Parliamentary Standing Committee on Labour for examination.

GOVERNANCE REFORMS THROUGH TECHNOLOGY

Shram Suvidha Portal:

The Ministry of Labour & Employment has developed a unified Web Portal ‘Shram Suvidha Portal’, to bring transparency and accountability in enforcement of labour laws and ease complexity of compliance.

Allotment of unique Labour Identification Number (LIN) to Units after registration to facilitate online inspection & compliance was started on the Portal with its launch on 16.10.2014 itself. Unique Labour Identification Number (LIN) has been allotted to 27,81,065 units as on 08.11.2019.

Transparent Labour Inspection Scheme in Central Sphere was started on the Portal with its launch on 16.10.2014 itself. Since the launch of the Labour Inspection Scheme, 5,24,189 inspection reports across the four Central Labour Enforcement Agencies have been uploaded on Shram Suvidha Portal.

ONLINE RETURN – Unified Online Annual Returns have been made mandatory in respect of eight (8) Central Labour Acts, namely, the Payment of Wages Act, 1936, the Minimum Wages Act, 1948, the Maternity Benefit Act, 1961, the Payment of Bonus Act, 1965, the Industrial Disputes Act, 1947.the Contract Labour (Regulation and Abolition) Act, 1970, the Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979, and the Building and Other Construction Workers (Regulation of Employment and Condition of Service) (BOCW) Act, 1996. These Returns which were half yearly/annually earlier, now need to be filed by all employers annually only and are to be filed online. 1,08,711 online returns have been filed on the Shram Suvidha Portal as on 08.11.2019 Since launch of the Online Annual Return.

31,047 online returns have been filed on the Shram Suvidha Portal till November 08, 2019 under Mines Act, 1952 (Coal Mines Regulations, Metallurgical Mines Regulations and Oil Mines Regulations).

Unified monthly Electronic Challan-cum-Return (ECR) for EPFO and ESIC has been made operational.

COMMON REGISTRATION: Common Registration form for EPFO and ESIC has been made operational. 1,27,544 units have been registered with EPFO & 1,07,681 units have been registered with ESIC as on November 08, 2019.

Common Registration under three Central Acts namely the Building and Other Construction Workers (Regulation of Employment and Condition of Service) Act, 1996, the Inter-State Migrant Workmen (Regulation of Employment and conditions of Service) Act, 1979 and the Contract Labour (Regulation and Abolition) Act, 1970 is being provided online on Shram Suvidha Portal. 6052 registrations have been issued using this facility as on 08.11.2019.

Licenses under two Central Acts, namely, the, Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979 and the Contract Labour (Regulation and Abolition) Act, 1970 have been made online. 20,316 licenses have been issued using this facility as on 08.11.2019.

State Integration

Integration of States with Shram Suvidha Portal is under way. As on date, Haryana, Gujarat, Rajasthan, Uttar Pradesh, Madhya Pradesh, Maharashtra, Punjab, Uttarakhand and Delhi are being integrated with the Portal. Data is being shared and LIN is being allotted to the establishments covered by the state labour enforcement agencies.

Start Up India

Facility for exemption from Labour Inspections under six (6) Central Labour Acts is being provided to the Start-ups which submit self certified declarations through Shram Suvidha Portal.

State/UT Governments have been advised to regulate the inspections for the Start-Ups, wherever applicable and extend the self-certification compliance regime from 3 years to 5 years. 27 States/UTs have taken action on the advisory dated 12.01.2016 /06.04.2017 issued by this Ministry for self-certification and to regulate inspection under the four (4) labour laws viz. the Building & Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996, the Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979,the Payment of Gratuity Act, 1972 and the Contract Labour (Regulation and Abolition) Act, 1970 for the start-ups wherever applicable.

Social Security Schemes

Government of India has launched two pension schemes for old age protection and social security of Unorganised Workers in 2019.

Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM), a voluntary and contributory pension scheme, was launched in February, 2019 for the benefit of unorganized workers. It is central sector scheme open to unorganised workers, whose monthly income is Rs.15000/- or below and who has an Aadhar number as well as savings bank / jan-dhan account. The minimum age for joining the scheme is 18 years and the maximum is 40 years. Under the scheme, minimum assured monthly pension of Rs.3000/- will be provided to the beneficiaries from the age of 60 years onwards. Enrolment to the Scheme is done through the Common Service Centres, with its network of 3.50 lakh Centres across the country. In addition eligible persons can also self-enroll through visiting the portal www.maandhan.in. Under the scheme, the subscriber is required to pay the prescribed monthly contribution amount and the Central Government provides equal contribution. Life Insurance Corporation of India (LIC) is the Pension Fund Manager and shall be responsible for pension pay-out. Total number of 39,00,525 beneficiaries under PM-SYM have been enrolled as on 10.12.2019.

National Pension Scheme for Traders, Shopkeepers and Self-Employed Persons has been launched on 12.09.2019. It is a voluntary and contributory pension scheme. Enrolment to the Scheme is done through the Common Service Centres, with its network of 3.50 lakh Centres across the country. In addition eligible persons can also self-enroll through visiting the portal www.maandhan.in. The traders in the age group of 18-40 years with an annual turnover, not exceeding Rs.1.5 crore and who are not a member of EPFO /ESIC/ NPS/ PM-SYM or an income tax payer, can join the scheme. Under the scheme, 50% monthly contribution is payable by the beneficiary and equal matching contribution is paid by the Central Government. Subscribers, after attaining the age of 60 years, are eligible for a monthly minimum assured pension of Rs.3,000/-. Total number of 20,000 beneficiaries under NPS-Traders have been enrolled as on 10.122019.

Pension Week was also celebrated in all the States/UTs w.e.f. 30th November to 06th December, 2019 in coordination with Common Service Centres, to increase the enrolments under both the Schemes, i.e. PM-SYM and NPS-Traders. A Central level function was inaugurated on 30.11.2019 by Minister for Labour and Employment launching the Pension Week/Pension Saptah. All the State Governments/UT Governments were requested for popularizing and bringing more awareness about the scheme. The progress of the Scheme is being reviewed regularly in the Ministry for taking initiatives under Mission Mode.

Major Steps Taken In EPFO

Three new apps to improve service delivery of subscribers were launched by Shri Santosh Kumar Gangwar, Minister of State (I/C) for Labour and Employment on EPFO Foundation Day. The details of three important digital initiatives of EPFO are as under:

1. Online Facility for UAN generation by worker: Now any workers can obtain Universal Account Number (UAN) directly on EPFO website which enrolls them for PF, Pension and Life Insurance benefits and a worker need not depend on his employer alone for UAN. This is in the direction of ease of living and ensuring universal social security.
2. EPS Pensioner’s PPO in DigiLocker website / Application (APP) EPFO integrates with DigiLocker of NeGD to create depository of electronic PPOs which is accessible to individual pensioners. This is a move towards paperless system and ease of living for pensioners.
3. e-Inspections: Digital interface of EPFO with employers: The E-Inspection Form would be available in user login of employers not filing ECR which enables employer to inform either closure of business or unpaid dues with proposal for payment. It will nudge employers for compliant behavior and prevent undue harassment of non-willful defaulters and eliminate inspector raj.

Central Board of Trustees, EPF recommends crediting of 8.65% rate of interest on Accumulations in the EPF Member’s Account for the year 2018-19:

In 224th meeting of the Central Board of Trustees, EPF under the chairmanship of Union Minister of State for Labour and Employment (I/C) Shri Santosh Kumar Gangwar, the Central Board recommended crediting of 8.65 % rate of interest on the EPF accumulations in the EPF member’s account for the year 2018-19.

New Initiatives taken in Central Board of Trustees (CBT) meeting held on 21 August 2019:

1. Amendment in Employees’ pension Scheme 1995:

In a major decision, the Central Board of Trustees (CBT) EPF in a meeting held at Hyderabad on 21 August 2019, approved the proposal to recommend for amendment in Employees’ Pension Scheme (EPS) 1995 for restoration of commuted value of pension to the Pensioners after 15 years of drawing commutation which will benefit approx. 6.3 lakhs pensioners. This was a long pending demand of the pensioner

2. Launch of Revamped EPFIGMS 2.0 Version:

The Chairman CBT also launched the revamped EPFIGMS 2.0 version which will benefit more than 5 crores subscribers and lakhs of employers by speedy and smooth resolution of grievances.

Selection of ETF Manufacturers: The Board approved the decision to choose the Exchange Traded Fund (ETF) manufacturers through public bidding by 30/10/2019, extension of the term of the present ETF manufacturers (SBI MF and UTI MF) till then and also to authorized the Finance Investment & Audit Committee (FIAC) to conduct the exercise of choosing ETF manufacturers.

Allocation of investment in Nifty 50 and Sensex: The Board approved the proposal that the fund allocation between Nifty 50 and Sensex ETFs be divided evenly, i.e. in the ratio of 50% to 50%.

Appointment of a Consultant in addition to M/s. CRISIL Ltd: The Board approved the nomination of members from employer’s and employee side in a Committee constituted to select and appoint a separate Agency/Consultant in addition to M/s. CRISIL limited, inter-alia to review the working of the Portfolio Managers (PMs), assist the investment Committee in redemption of ETFs, etc.

Appointment of Portfolio Managers for managing funds of Central Board, EPF: The Central Board approved Request for Proposal (RFP) document for appointment of Portfolio Managers and recommendation of the FIAC on appointment of Portfolio Managers.

Exercise of early redemption options available in DHFL Bonds: The Board approved for early redemption option in DHFL bonds recommended by FIAC.

Major Steps Taken In ESIC

Rate reduction in ESI Contribution- The ESI Corporation has reduced rates of ESI Contribution being paid by employees and employers covered under ESI Scheme from 6.5 % (Employees’ share 1.75% & Employers’ share 4.75%) to 4% (Employees’ share 0.75% & Employers’ share 3.25%) with effect from 01.07.2019. This reduction of contribution rates, will ensures financial relief to employers and employees. However, the healthcare benefits under the ESI scheme will remain the same. The decision will benefit 36 million workers and 1.28 million employers.

Health Passbook for ESI Beneficiaries – ESIC has introduced a Health Passbook for ESI Beneficiaries in Phased manner. This Health Passbook serves as a user-friendly mechanism for beneficiary identification, recording of clinical finding and consultation advice by the Insurance Medical Practitioner(s). Salient feature of Health Passbook is as under: –

• Separate Passbook with Unique Health ID, QR code and photograph of Insured Persons and his/her family members.
• Serves for beneficiaries identification & recording of clinical findings and consultation advice by ESI Doctors/ IMPs.
• Passbook would be issued by the ESIC Branch Offices in a phased manner.

Insured Persons of ESIC from newly implemented area to get treatment under Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (PMJAY): ESIC has decided to provide cashless medical care services to entitled Insured Persons and Beneficiaries under Ayushman Bharat package rates in newly implemented area of 102 designated Districts through PMJAY empanelled hospitals up to a maximum limit of Rs.5.00 lakh, beyond which individual case will be channelled to ESIC for seeking approval for further expenditure on ESI beneficiaries. Similarly, PMJAY beneficiaries may get in-house medical treatment services as per Ayushman Bharat approved packages from underutilized ESI Hospitals.

ESIC – Chinta Se Mukti app launched – The Corporation has also launched the ESIC “Chinta Se Mukti” app available on the UMANG platform to facilitate stakeholders to view contribution details, eligibility for benefits, claim status, etc. in their Mobile Handset.

Extending medical benefits to Non-IPs – The Corporation has extended its medical services to Non-Insured Persons (General Public) in its under-utilized hospitals. Now, Non-IPs can avail medical services from underutilized ESIC Hospital, at Alwar (Rajasthan), Bihta (Bihar), Gulbarga (Karnataka), Bareilly Varanasi, Sarojani Nagar (Lucknow) & Jajmau (Kanpur) on a nominal charge of Rs.10/- for OPD Consultation and at 25% of CGHS package rates for IPD.

Unified Website – In order to maintain the corporate identity of ESIC and to have a repository of common information, and also to have uniformity in design and content, a Unified Website www.esic.nic.in has been launched. All the Regional Offices/Sub-Regional Offices, ESIC Hospitals and ESIC Medical Institutions & Hospitals have been made part of this single unified website.

ESIC- contributing excellence in sports – ESIC had recruited 135 meritorious sports persons including Shri Pramod Bhagat, ace para-shuttler from all across India during the year 2016. Shri Pramod Bhagat, an ESIC employee at Regional Office, Bhubaneswar has received prestigious Arjuna Award for the current year on 29th Aug., 2019. Shri Pramod Bhagat has many tournaments to his credit including five international titles in six tournaments he participated. He won a gold medal in the men’s singles SL3 category at the BWF Para-Badminton World Championships in Basel. Bhagat said he is now focusing to clinch a gold medal in the Olympics.

Strengthening of Medical Infrastructure – In order to provide in-house quality medical services in the major ESIC Hospitals, of late, ESIC has procured state-of-the-art medical equipments viz. MRI, CT Scan etc. for ICU, Secondary & Super Speciality care.

National Career Service Project-(NCS) – The Ministry is implementing the National Career Service (NCS) Project as a Mission Mode Project for transformation of the National Employment Service to provide a variety of employment related services like career counselling, vocational guidance, information on skill development courses, apprenticeship, internships etc. The services under NCS are available online and can be accessed directly, through Career Centres, Common Service Centres, post offices, mobile devices, cyber cafes etc. The various stakeholders on the NCS platform include job-seekers, industries, employers, employment exchanges (career centres), training providers, educational institutions and placement organizations.

The progress of NCS Portal is given below:

NATIONAL CAREER SERVICE

With the increased focus of Government on Career Counselling, the Ministry proposes to create a network of Career Counsellors where the Career Centres will become the hub of Career Counselling in their area. Under the process, 5645 Active Career Counsellors from various States/UTs have got registered at NCS Portal.

The NCS Project also envisaged setting up of Model Career Centres (MCCs) to be established in collaboration with States and other institutions to deliver employment services. Approval for 146 MCCs has been accorded (including 07 MCCs on non-funding basis). These model centres can be replicated by the States from their own resources. The Government now, keeping in view of the importance of the employment as a thrust area in Government Schemes, and to provide employment related services to maximum job seekers and other stakeholders has decided to establish 100 more Model Career Centres (MCCs) thereby extending the geographical coverage of the scheme increasing number of Government funded MCCs to 200 during 14th Finance commission (2017-2020). Proposals were received from different States. On the recommendations of the Appraisal Committee, Government has approved 171 (including 07 on non-funding basis) Model Career Centres. Further 37 more model career centers have been recommend by the Inter Ministerial Appraisal Committee in the meeting held on November 20, 2019.

National Career Service Centres for Differently Abled (NCSC-DAs): 21 National Career Service Centres for Differently Abled (NCSC-DAs) are functioning in the country under the administrative control of Directorate General of Employment, M/O Labour & Employment. These Centres evaluate residual capacities of Persons with Disabilities, provide Vocational Training, and extend Vocational Rehabilitation assistances etc. to Persons with Disabilities (PWDs). The Services of NCSC-DAs are open to Persons with Disabilities irrespective of the gender and education in the category of Locomotor, Visual & Hearing impaired, Mild Mental Retardation and Leprosy Cured.

6644 Candidates have been rehabilitated upto October 31, 2019 by NCSC-Das.

National Career Service Centre Centres (NCSCs) for SC/STs; Directorate General of Employment is implementing the scheme for “Welfare of SC/ST job seekers through Coaching, Vocational Guidance and Training and Introduction of new courses in existing National Career Service Centre Centres (NCSCs) for SC/STs and Establishment of new NCSCs in the States not covered so far” Under the scheme, National Career Service Centre Centres (NCSCs) for SC/STs has been set up by Govt. of India, Ministry of Labour& Employment, DGE to enhance the employability of SC/ST job seekers through coaching/training. So far 25 National Career Service Centre Centres for SCs/STs have been set up.

67761 candidates have been provided guidance and counselling services, 5621 students were trained in typing and shorthand and 1050 candidates were trained in computer skills by NCSC-SC/STs upto October 31, 2019.

Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) – Under the scheme, Government of India is paying Employer’s full contribution i.e. 12% towards EPF and EPS both (as admissible from time to time) for a period of three years to the new employees through EPFO.

This scheme has a dual benefit, where, on the one hand, the employer is incentivised for increasing the employment base of workers in the establishment, and on the other hand, a large number of workers will find jobs in such establishments. A direct benefit is that these workers will have access to social security benefits of the organized sector. All the beneficiaries under this scheme are Aadhaar Seeded.

152778 Establishments covering 12165587 Beneficiaries have benefitted till November 25, 2019 under Pradhan Mantri Rojgar Protsahan Yojana (PMRPY).

BRIEF OF WORKERS EDUCATION SCHEME

The Dattopant Thengadi National Board for Workers Education & Development (renaming of CBWE), an autonomous body under the Ministry of Labour & Employment, Government of India conducts the Workers Education Programmes of varied nature and duration in the country through its 50 Regional and 7 Sub-Regional Directorates spread Kashmir to Kannyakumari and Leh and laddakh for all categories without making any distinction on the basis of male and female in Organised, Unorganised and Rural Sectors. The DTNBWED training programmes aim at creating desired awareness among the workers in general and unorganized/ rural workers in particular about their rights and entitlements under various welfare schemes of the Central / State government etc.

The Board has organized 1625 training programme organized sector workers, 1120 programme conducted for unorganized and 150 for rural workers.

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Central Board of Trustees (CBT) approved the proposal to recommend for amendment in Employees Pension Scheme (EPS) 1995

Ministry of Labour & Employment

CBT Approved Proposal to Recommend Amendment in EPS 1995
225th meeting of CBT held on 21st august, 2019 at Hyderabad

22 AUG 2019

In a major decision, the Central Board of Trustees (CBT) EPF in a meeting held at Hyderabad on 21 August 2019, approved the proposal to recommend for amendment in Employees’ Pension Scheme (EPS) 1995 for restoration of commuted value of pension to the Pensioners after 15 years of drawing commutation which will benefit approx. 6.3 lakhs pensioners. This was a long pending demand of the pensioners.

The Minister of State (I/C) for Labour and Employment Shri Santosh Kumar Gangwar whose also Chairman CBT, while addressing the CBT expressed satisfaction that Employees’ Provident Fund Organisation (EPFO) is settling more than 91 % claims of EPF members in online mode and lauded the efforts made to improve services for settlement of claims of family of deceased members and EPF call centre function 24 by 7.

He also appreciated the good governance strategy adopted by EPFO in saving of Rs.22 crores p.a. due to negotiating reduced OD charges increased FD interest and waiver of collection charges by SBI and further savings of Rs.50 lakhs p.a. due to reduction in collection charges by three banks and achievement of highest yield (8.55%) by Portfolio Managers since July 2015.

The Minister released the educative booklet on seasonal employees regarding special provision in EPS’1995 regarding eligibility of seasonal employees for pension. The contents of booklet brings out the Scheme provision that contributory service in any year, even if contributory period is less than a year is treated as full year of eligible service for seasonal employee and this will help dispel doubts in minds of members/employers.

The Chairman CBT also launched the revamped EPFIGMS 2.0 version which will benefit more than 5 crores subscribers and lakhs of employers by speedy and smooth resolution of grievances.

The Board approved the proposal for Selection and Performance Evaluation of next Custodian by the new Consultant which will be appointed on the basis of Report of Five Members’ Committee constituted by the CBT for the purpose.

In the matter of coupon default of IL&FS Ltd, the Board nominated three officers of Investment Division of EPFO to attend the Debenture – Holders’ Meeting that may be held in future and if need be, vote on behalf of the Central Board, EPF.

Selection of ETF Manufacturers: The Board approved the decision to choose the Exchange Traded Fund (ETF) manufacturers through public bidding by 30/10/2019, extension of the term of the present ETF manufacturers (SBI MF and UTI MF) till then and also to authorized the Finance Investment & Audit Committee (FIAC) to conduct the exercise of choosing ETF manufacturers.

Allocation of investment in Nifty 50 and Sensex: The Board approved the proposal that the fund allocation between Nifty 50 and Sensex ETFs be divided evenly, i.e. in the ratio of 50% to 50%.

Appointment of a Consultant in addition to M/s. CRISIL Ltd: The Board approved the nomination of members from employer’s and employee side in a Committee constituted to select and appoint a separate Agency/Consultant in addition to M/s. CRISIL limited, inter-alia to review the working of the Portfolio Managers (PMs), assist the investment Committee in redemption of ETFs, etc.

Appointment of Portfolio Managers for managing funds of Central Board, EPF: The Central Board approved Request for Proposal (RFP) document for appointment of Portfolio Managers and recommendation of the FIAC on appointment of Portfolio Managers.

Exercise of early redemption options available in DHFL Bonds: The Board approved for early redemption option in DHFL bonds recommended by FIAC.

Consent for Transfer of Non- Convertible Debentures (NCDs) of GSPC to GSIL: EPFO has total investment of Rs.2300 Cr in GSPC NCDs. The Board approved the transfer of NCDs of GSPC to GSIL, a wholly owned subsidiary of Govt. of Gujarat and a better rated company which had made an offer to take over debt of GSPC with budgetary support of Government of Gujarat

Legal Entity Identifier Code (LEI) for participation in non- derivative markets by EPFO: In Nov’18, the Reserve Bank Of India (RBI) issued advisory to all eligible market participants in the Financial Markets to obtain LEI Code. The Board approved the nomination of the EPFO Officers as the authorized Officials to obtain LEI Code.

Withholding Investments in bonds of private sector companies: The CBT approved the decision to withhold any further investment in Private Sector Companies Bonds and to compulsorily consider one of the two required ratings necessarily from CRISIL, CARE, ICRA & India Ratings for investments in PSU Bonds category.

The Board ratified the decision of put option in NCDs of Tamil Nadu Power Finance Corporation and also approved put option in bond issued Kerala Finance Corporation & Tamil Nadu Power Finance and Infrastructure Dev. Corp. Ltd.

Shri Raghunathan, Employees’ Representative on the Central Board, EPF appreciated the efforts of the Finance Investment & Audit Committee chaired by the Central Provident Fund Commissioner in finalizing the new Portfolio Managers for investing EPFO’s corpus through a very transparent procedure. He further informed the Board that while SBI’s Fund Management Arm has quoted 94% lesser than SBI PMS in the last mandate, UTI AMC has quoted 28% lesser. This would result in huge savings in portfolio management fees by EPFO.

PIB

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The Finance Ministry has approved 8.65% rate of interest on Employees’ Provident Fund (EPF) for 2018-19 as decided by retirement fund body EPFO, benefitting more than 6 crore formal sector workers.

“The Department of Financial Services (DFS), a wing of Finance Ministry, has given its concurrence to Employees Provident Fund Organisation’s (EPFO) decision to provide 8.65% rate of interest for 2018-19 to its subscribers,” a source privy to the development told PTI.

“The DFS has approved the proposal subject to fulfilment of certain conditions related to efficient management of the retirement fund,” the source said further.

Earlier in February, the EPFO’s apex decision making body Central Board of Trustees headed by labour minister Santosh Gangwar had decided to raise the interest rate on EPF to 8.65% for 2018-19, which was the first increase in the last three years.

The interest rate on EPF was hiked to 8.65% for the last fiscal from 8.55% provided in 2017-18. The EPFO had earlier reduced the interest rate in 2016-17 to 8.65% from 8.8% in 2015-16.

After the Finance Ministry concurrence, the Income Tax Department and the Labour Ministry would notify the rate of interest for 2018-19. Thereafter the EPFO would give directions to its over 120 field offices to credit the rate of interest into subscribers’ account and settle their claims accordingly.

According to the EPFO estimates, there would be a surplus of ₹151.67 crore after providing 8.65 per cent rate of interest for 2018-19 on EPF. There would have been a deficit of ₹158 crore on providing 8.7 per cent rate of interest in EPF for last fiscal. That is why the body decided to provide 8.65 per cent rate of interest for 2018-19.

The EPFO had provided a five-year low interest rate of 8.55% to its subscribers for 2017-18.

PTI

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07 JAN 2019

Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) was launched on 9th August, 2016 with the objective to incentivise employers for creation of employment. Under the scheme, Government of India is paying Employer’s full contribution i.e. 12% towards EPF and EPS both (as admissible from time to time) w.e.f. 01.04.2018 for a period of three years to the new employees and to the existing beneficiaries for their remaining period of three years through EPFO.  The terminal date for registration of beneficiary through establishment is 31st March, 2019.The scheme is targeted for employees earning upto Rs. 15,000 per month. This scheme has a dual benefit, where, on the one hand, the employer is incentivised for increasing the employment base of workers in the establishment, and on the other hand, these workers will have access to social security benefits of the organized sector. Number of Employees and Establishments benefitted as on 31.12.2018 is 98.38 lakh and 1.21 lakh respectively. State-wise employees, establishment benefited and amount of subsidy disbursed is at Annexure.

Annexure

Details from PMRPY Portal from inception till 31-Dec- 2018

This information was given by Shri Santosh Kumar Gangwar Union Minister of State (I/C) for Labour and Employment in written reply to a question in Lok Sabha today.

PIB

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Coverage and Sources of data

1. The Employees Provident Fund Scheme (EPF) is a mandatory savings scheme under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. It is managed under the aegis of Employees’ Provident Fund Organization (EPFO). It covers every establishment in which 20 or more persons are employed (and certain other establishments which may be notified by the Central Government even if they employ less than 20 persons each), subject to certain conditions and exemptions as provided for in the Act. The pay ceiling is Rs.15000/- per month. Persons drawing pay above Rs. 15,000 are exempted or can be enrolled with some permission or on voluntary basis. The number of members subscribing to this scheme gives an idea of the level of employment in the formal sector. The data on subscribers-new members, exited members and those subscribers that re-started their subscription is sourced from EPFO. More details are available at www.epfindia.gov.in.

2. The Employees State Insurance Act, 1948 is applicable to non-seasonal, manufacturing establishments (other than a mine subject to the operation of the Mines Act, 1952 (35 of 1952), or a railway running shed) employing 10 or more workers. For health and medical institutions, the threshold limit is 20 or more workers. ESI Scheme for India is an integrated social security scheme tailored to provide socio-economic protection to the workers in the organized sector and their dependents, in contingencies, such as Sickness, Maternity and Death or Disablement due to an employment injury or occupational hazard. The wage ceiling is Rs.21000/- per month. Beneficiaries are termed as Insured Persons (IP) and a new IP number can also arise due to change in employment. Employees may cease to pay contribution due to wage exceeding the statutory ceiling of Rs.21000/- per month or owing to resignation, death, retirement or dismissal. The number of subscribers of this scheme also gives an idea of the level of employment in the formal sector. Data is sourced from Employees’ State Insurance Corporation (ESIC) and the information may have an element of duplication with EPF data and is thus not additive. More details are available at www.esic.in.

3. The Pension Fund Regulatory and Development Authority (PRFRDA)’s National Pension scheme (NPS) is an easily accessible, low cost, tax-efficient, flexible and portable retirement savings account. Under the NPS, the individual contributes to his retirement account and also his employer will co-contribute for the social security/welfare of the individual. NPS is designed on defined contribution basis wherein the subscriber contributes to his account, there is no defined benefit that would be available at the time of exit from the system and the accumulated wealth depends on the contributions made and the income generated from investment of such wealth. Any citizen of India, whether resident or non-resident, individuals who are aged between 18 – 60 years as on the date of submission of his/her application can subscribe to the scheme. From 1st January 2004, the central and the state governments have adopted this scheme for new employees except for armed forces. This was extended to other establishments from 2009 onwards. More details are available at www.pfrda.org.in.

Download the full details from Central Statistics office

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