Lok Sabha Question No. 2477 (UNSTARRED), answered on 2018-03-09
Subject: Social Security Pension
Ministry: FINANCE
Asked by: SATISH CHANDRA DUBEY

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

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## LOK SABHA UN STARRED QUESTION NO. 2477 TO BE ANSWERED ON MARCH 09, 2018/PHALGUNA 18, 1939 (SAKA) SOCIAL SECURITY PENSION

## 2477. Shri Satish Chandra Dubey

Will the Minister of FINANCE be pleased to state

- (a) whether funds allotted by the Government as Social Security Pension is less as compared to the inflation and if so, the details thereof;
- (b) whether the Government proposes to increase the amount of pension in proportion to inflation and if so, the details thereof;
- (c) whether the people belonging to low income group and middle income group have been excluded from the ambit of Social Security Pension scheme due to complex rules and if so, the details thereof; and
- (d) whether the Government proposes to bring the people of low income group and middle income group under the Social Security Pension scheme by amending the rules and if so, the details thereof?

## ANSWER

The Minister of State in the Ministry of Finance (Shri Shiv Pratap Shukla)

(a) & (b) As per Ministry of Labour and Employment, to provide for the institution of provident funds, pension fund and deposit-linked insurance fund for the workers in the organized sectors, the Government has framed three Schemes  under  the  Employees'  Provident  Funds  and  Miscellaneous  Provisions  (EPF  &  MP)  Act,  1952,  which include (a) The Employees' Provident Funds (EPF) Scheme, 1952; (b) The Employees' Pension Scheme (EPS), 1995; and (c) The Employees' Deposit-Linked Insurance (EDLI) Scheme, 1976.

The Employees' Pension Scheme (EPS), 1995, is a self-funded Scheme with contribution from employer @8.33 per cent of wages (up to Rupees Fifteen Thousand). Further, Government contributes 1.16 per cent of wages in EPS, 1995, up to a salary limit of Rs. 15, 000/- per month.

As per Ministry of Rural Development,  the Government  implements  National  Social Assistance Programme (NSAP), which is a social security/welfare programme for the persons belonging to below poverty line (BPL)  household  and  implemented  in  the  rural  as  well  as  urban  areas  of  the  Country.  Under  National  Social Assistance Programme (NSAP) following three pension schemes are being administered: a) Old Age Pension, b) Widow Pension, c) Disability Pension.

In  respect  of  these  three  pension  schemes  targeted  beneficiaries  are  provided  with  monthly  financial  assistance ranging between Rs.200-500 depending on the age of the beneficiary and category of the pension. Being a welfare measure, the pension schemes under National Social Assistance programme are not linked to price index.

The  Pension  Fund  Regulatory  and  Development  Authority  implemented  Atal  Pension  Yojana  (APY),  a voluntary, periodic contribution based pension scheme since May, 2015, which is open to all saving bank/post office saving  bank  account  holders  in  the  age  group  of  18  to  40  years.  Under  APY,  the  government  guarantees  the minimum pension of Rs. 1000 per month or Rs. 2000 per month or Rs. 3000 per month or Rs. 4000 per month or Rs. 5000 per month, after the age of 60 years until his/her death,  depending upon the pension plan chosen by the subscriber.

(c) & (d)  As per Ministry of Labour and Employment, the members whose monthly wage is up to Rs.15, 000/- are already covered under EPS, 1995. This ceiling was revised from Rs. 6500/- per month to Rs.15, 000/- per month w.e.f. 01.09.2014.

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