Employees’ Pension Scheme

Why in news?

• The Employees’ Pension (Amendment) Scheme, 2014 of the Employees’ Provident Fund Organisation was recently upheld by the Supreme Court of India.
• However SC quashed the threshold limit of Rs 15,000 monthly salary for joining the pension fund.

What is Employees’ Pension Scheme (EPS)?

• The EPS, provided by EPFO, makes provisions for pensions for the employees in the organized sector after the retirement at the age of 58 years.
• Employees who are members of EPF automatically become members of EPS

Contribution to EPS:

• An employee contributes 12% of his/her pay towards the EPF account. A matching contribution is also made by the employer.
• 8.33% of the employee's pay is remitted by the employer to EPS.
• The Central Government also contributes at the rate of 1.16 per cent of the pay of the members to the Employees' Pension Scheme.

PRACTICE QUESTION

UPSC 2021

With reference to casual workers employed in India, consider the following statements:

1.All casual workers are entitled for Employees Provident Fund coverage.

2.All casual workers are entitled for regular working hours and overtime payment.

3.The government can by a notification specify that an establishment or industry shall pay wages only through its bank account.

Which of the above statements are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Answer