Lok Sabha Question No. 2332 (UNSTARRED), answered on 2022-08-01
Subject: Interest on EPF deposits
Ministry: LABOUR AND EMPLOYMENT
Asked by: A. Ganeshamurthi, Sarmistha Sethi, Sougata Ray, M.K. Vishnu Prasad

## MINISTRY OF LABOUR AND EMPLOYMENT

## GOVERNMENT OF INDIA LOK SABHA

UNSTARRED QUESTION NO. 2332

TO BE ANSWERED ON 01.08.2022

## INTEREST ON EPF DEPOSITS

2332. SHRI A. GANESHAMURTHI:

SHRIMATI SARMISTHA SETHI:

PROF. SOUGATA RAY:

DR. VISHNU PRASAD M.K.:

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

- (a)whether the Government proposes to reconsider hiking the rate of interest
- on Employees' Provident Fund (EPF) deposits and if so, the details thereof;
- (b)the minimum monthly pension for a retired employee since when the EPF pension scheme started and the reasons for not increasing the minimum monthly pension despite increase in cost of living and higher inflation;
- (c)whether the Government has any proposal to open new Central Pension Disbursal  System  for  EPFO  and  if  so,  the  details  thereof  along  with  the number of pensioners enrolled in EPFO, State-wise;
- (d)whether there is any proposal to allow the pensioners to withdraw their deposits before six months and if so, the details thereof; and
- (e)whether  the  Government  has  received  demands  from  stakeholders  like trade  unions  and  public  representatives  for  increasing  the  minimum pension under EPF pension scheme, if so, the time by when the pension would be increased to Rs.9000?

## ANSWER

## MINISTER OF STATE FOR LABOUR AND EMPLOYMENT (SHRI RAMESWAR TELI)

- (a): As per the provisions of Paragraph 60(1) of the Employees' Provident Fund  (EPF)  Scheme,  1952,  Employees'  Provident  Fund  Organisation  (EPFO) shall credit to the account of each member interest at such rate as may be determined by the Central Government in consultation with the Central Board of Trustees (CBT), Employees' Provident Fund (EPF). The rate of interest on EPF is dependent on the income received by the EPF from its investments and such incomes are distributed only in accordance with the EPF Scheme, 1952. The CBT, EPF had recommended 8.10 per cent rate of interest on EPF for the financial year 2021-22, which has been approved by the Government

and  is  higher  than  other  comparable  schemes  viz.  General  Provident  Fund (7.10%)/Senior Citizens Savings Scheme (7.40%)/Sukanya Samriddhi Account Scheme  (7.60%).  There  is  no  proposal  to  reconsider  the  approved  rate  of interest (8.10%) on EPF deposits for the year 2021-2022.

(b): The Employees' Pension Scheme (EPS), 1995 is a 'Defined Contribution-Defined  Benefit'  Social  Security  Scheme.  The  corpus  of  the Employees'  Pension  Fund  is  made  up  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.  All  benefits  under  the  scheme  are  paid  out  of  such accumulations. The fund is valued annually as mandated under paragraph 32 of the EPS, 1995 and as per the valuation of the fund as on 31.03.2019, there is  an  actuarial  deficit.  However,  the  Government  had,  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.  In addition  Government  provides  budgetary  support  of  1.16%  of  wages  of  the member to Employees' Provident Fund Organisation (EPFO).

(c): No, Sir. The State/UT-wise details of number of pensioners enrolled in Employees' Provident Fund Organisation is at Annexure.

(d): No, Sir.

(e): Yes, Sir. Representations have been received from individuals as well as pensioners' associations for enhancement of minimum pension under EPS, 1995. There is no proposal to enhance the minimum pension under the EPS, 1995.

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ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (c)  TO  LOK  SABHA  UNSTARRED QUESTION NO. 2332 DUE FOR REPLY ON 01.08.2022 RAISED BY HON'BLE MPS SHRI A. GANESHAMURTHI,  SHRIMATI  SARMISTHA  SETHI,  PROF.  SOUGATA  RAY  AND  DR. VISHNU PRASAD M.K. REGARDING 'INTEREST ON EPF DEPOSITS'.

| Sl. No.   | STATE/UT                            |   PENSIONERS ENROLLED IN EMPLOYEES' PROVIDENT FUND ORGANISATION |
|-----------|-------------------------------------|-----------------------------------------------------------------|
| 1         | ANDAMANANDNICOBAR ISLANDS           |                                                            3306 |
| 2         | ANDHRA PRADESH                      |                                                          502128 |
| 3         | ARUNACHAL PRADESH                   |                                                             631 |
| 4         | ASSAM                               |                                                           54590 |
| 5         | BIHAR                               |                                                          211130 |
| 6         | CHANDIGARH                          |                                                           25837 |
| 7         | CHHATTISGARH                        |                                                          102128 |
| 8         | DADRA AND NAGAR HAVELI& DAMANANDDIU |                                                            2253 |
| 9         | DELHI                               |                                                          162628 |
| 10        | GOA                                 |                                                           28278 |
| 11        | GUJARAT                             |                                                          447843 |
| 12        | HARYANA                             |                                                          162928 |
| 13        | HIMACHAL PRADESH                    |                                                           40438 |
| 14        | JAMMU AND KASHMIR                   |                                                             228 |
| 15        | JHARKHAND                           |                                                          159738 |
| 16        | KARNATAKA                           |                                                          599965 |
| 17        | KERALA                              |                                                          445094 |
| 18        | LAKSHADWEEP                         |                                                              55 |
| 19        | MADHYAPRADESH                       |                                                          236961 |
| 20        | MAHARASHTRA                         |                                                         1218855 |
| 21        | MANIPUR                             |                                                            2384 |
| 22        | MEGHALAYA                           |                                                            4243 |
| 23        | MIZORAM                             |                                                             348 |
| 24        | NAGALAND                            |                                                            1539 |
| 25        | ODISHA                              |                                                          189783 |
| 26        | PUDUCHERRY                          |                                                            6229 |
| 27        | PUNJAB                              |                                                          142338 |
| 28        | RAJASTHAN                           |                                                          184978 |
| 29        | SIKKIM                              |                                                             766 |
| 30        | TAMIL NADU                          |                                                          839614 |
| 31        | TELANGANA                           |                                                          210211 |
| 32        | TRIPURA                             |                                                            9467 |
| 33        | UTTAR PRADESH                       |                                                          561106 |
| 34        | UTTARAKHAND                         |                                                           67623 |
| 35        | WEST BENGAL                         |                                                          648255 |
| TOTAL     | TOTAL                               |                                                         7273898 |

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