Higher Pension: Labour Ministry Plans EPS-95 Revamp

New Delhi, Nov 28 (PTI) The labour ministry is considering to revamp Employees' Pension Scheme 1995 (EPS-95) by allowing more contribution by members for higher retirement benefit, a top source said.

Presently, the entire contribution of members of the Employees' Provident Fund Organisation (EPFO), or 12 per cent of the basic salary, goes into the EPF account.

It is the employers' contribution, of which 8.33 per cent goes into EPS-95 while the remaining 3.67 per cent is credited into the EPF account.

The top source said members will get more pension if they contribute more into their EPS-95 account.

Therefore, the ministry is weighing options to allow a higher contribution towards EPS.

The source also said the employees could also be allowed to contribute towards EPS-95 to increase the pension benefit under the revamped structure.

The source added that besides improving social security benefits, the Modi government is also focusing on job creation in the country.

He explained that a capex of Rs 1 crore leads to the creation of 3-6 jobs.

Major infrastructure projects worth Rs 4.19 lakh crore have been approved, and it is estimated to generate over 1.26 crore jobs, the source added.