Decision fixing minimum pension to Rs 1,000 for EPF to be considered: Govt

NEW DELHI: Government today said a decision on fixing the minimum pension amount to Rs 1,000 per month for its EPF subscribers will be considered by the Central Board of Trustees of EPFO in its ensuing meeting.

The meeting is likely to be held on December 23. "The recommendation of the Pension Implementations of the Committee of EPFO to increase the minimum pension amount to Rs 1,000 per month for its subscribers is to be placed before the Trustees in its ensuing meeting for its consideration," Labour and Employment Minister Mallikarjun Kharge said.

In a written reply in the Rajya Sabha, he said the recommendation for increasing the minimum pension per month would require 0.63 per cent increase in the contribution of 8.33 per cent made by the employer.

According to EPFO data, as of March 31, 2010, 35 lakh pensioners subscribed to the retirement fund body, of which 14 lakh persons get a monthly pension of less than Rs 500.

The number of EPFO pensioners getting a monthly pension of Rs 1,000 is 7 lakh. The data reveals that there are cases where pensioners are getting a monthly pension as low as Rs 12 and Rs 38.