Centre has released Rs 2,000 crore to Employees’ Pension Scheme as its contribution for the year 2015-16, Minister of State for Labour and Employment Bandaru Dattatreya said on Monday.
This contribution is in addition to the Rs 250 crore contributed by the government as grant-in-aid in the Employees’ Pension Scheme, 1995 for providing minimum pension of Rs 1,000 to pensioners under the scheme, the Minister said in a statement.
The contribution of central government is calculated at a rate of 1.16 per cent of the monthly wages of the members contributing to the scheme. It is in addition to the contribution made by employers covered under the Act. Employers contribute 8.33 per cent of the monthly wages of the scheme members.
Since last September, EPS pensioners have been assured of a guaranteed minimum pension of Rs 1,000 per month and it has been necessary to infuse additional amount as grants-in-aid by the Centre to sustain the continuance of the minimum pension.