Lok Sabha Question No. 3671 (UNSTARRED), answered on 2021-12-20
Subject: Social Security to Industrial and Unorganised Workers
Ministry: LABOUR AND EMPLOYMENT
Asked by: Balubhau (Alias Suresh Narayan) Dhanorkar

## GOVERNMENT OF INDIA

## MINISTRY OF LABOUR AND EMPLOYMENT

## LOK SABHA

UNSTARRED QUESTION NO. 3671 TO BE ANSWERED ON 20.12.2021

## SOCIAL SECURITY TO INDUSTRIAL AND UNORGANISED WORKERS †3671. SHRI BALUBHAU ALIAS SURESH NARAYAN DHANORKAR:

Will the Minister of LABOUR AND EMPLOYMENT be pleased to state:

- (a)whether there is dissatisfaction amongst the beneficiary members of  pension  scheme  implemented  for  providing  social  security  to industrial  and  unorganized  workers,  due  to  shortcomings  in  the scheme;
- (b)if  so,  whether  the  Government  has  taken  any  decision  to  link dearness allowance and Government grants in the pension scheme so as to get proper benefit of pension;
- (c)the response of the Government on the recommendations contained in  the  report  of  the  Parliamentary  Committee  presented  in  the Parliament on 20 February, 2009;
- (d)  whether  an  expert  Committee  had  presented  its  report  to  the Government  on  5th  August,  2010  to  give  proper  benefit  to  the pensioners of 1995 scheme under social security;
- (e)if so, the details of the said report of the expert Committee thereof; and
- (f)whether  the  Government  proposes  to  provide  dearness  allowance and grants to the pensioners of 1995 as per their demands?

## ANSWER

## MINISTER OF STATE FOR LABOUR AND EMPLOYMENT

## (SHRI RAMESWAR TELI)

(a) to (f): The Employees' Pension Scheme (EPS), 1995 is a 'Defined Contribution-Defined  Benefit'  Social  Security  Scheme.  There  is  a pooled  account  for  providing  pension  under  EPS  consisting  of  (i) contribution  by  the  employer  @  8.33  per  cent  of  wages;  and  (ii) contribution  from  Central  Government  through  budgetary  support  @ 1.16 per cent of wages, up to an amount of Rs.15,000/- per month.

The  Government  had  constituted  an  Expert  Committee  to the recommendations/suggestions  made  by  the  Parliamentary  Standing Committee  on  Labour  in  its  29 th   Report  presented  to  Parliament  on review the Employees' Pension Scheme, 1995 based on 20.02.2009.

As per the recommendations of the Expert Committee, the Government,  for  the  first time, provided  a minimum  pension  of Rs. 1000 per month to the pensioners under EPS, 1995 from 01.09.2014 by  providing  additional  budgetary  support.  Further,  the  wage  ceiling for  coverage  under  Employees'  Provident  Fund  Organisation  (EPFO) was  revised  from  Rs.6500  to  Rs.15000  per  month  with  effect  from 01.09.2014.

Considering the demands of EPS pensioners, the Government had constituted a High-Empowered Monitoring Committee (HEMC) for evaluation and review of EPS, 1995.

As recommended  by  the HEMC,  the Government has notified its decision vide G.S.R. 132 (E) dated 20.02.2020 for restoration  of  normal  pension  after  completion  of  fifteen  years  from the  date  of  such  commutation,  in  respect  of  those  members  who availed  the  benefit  of  commutation  of  pension  under  the  erstwhile paragraph 12A of the EPS, 1995, on or before 25.09.2008.

However, the Committee did not recommend any linking of monthly pension with cost of living index as this may severely affect the financial health of the Employees' Pension Fund, as assessed by the Actuary appointed by the Government under paragraph 32 of the

EPS, 1995.

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