The government is likely to increase the minimum pension for subscribers of the Employees? Provident Fund (EPF) scheme to R1,000. According to labour ministry officials, the Central Board of Trustees of Employees? Provident Fund Organisation (EPFO) is going to meet on February 23 to decide the hike in minimum pension for the EPFO’s over 5-crore subscribers.
?A broad consensus has already been reached on increasing the minimum pension to R1,000. Now, the members of CBT and ministry officials will discuss the procedure of implementing this in their next meeting on 23 February,” said an official.
A decision in this regard was expected last month. Earlier, labour minister Mallikarjun Kharge had said that the recommendation of the committee on pension implementations to increase the minimum pension amount to R1,000 per month would be placed before the Trustees on December 23, 2011.
However, the issue was not taken up by the board as it failed to take a call even on rate of interest on EPF. For the proposed hike in minimum pension, the portion of employer?s contribution (8.33%) to the pension fund will be increased to 8.96%.
