Union Labour Minister Proposes Revisions to EPFO Contributions
Union Labour Minister Mansukh Mandaviya announced on Tuesday, September 17, 2024, that the government is considering removing the ceiling on contributions to the Employees’ Provident Fund Organisation (EPFO) and the Employees’ Pension Scheme (EPS). Speaking to reporters, Mr. Mandaviya highlighted that 92% of EPFO subscribers currently pay a consolidated amount, and the government aims to ease the upper limit, enabling them to invest more in the EPFO.
Currently, contributions are capped at a maximum wage ceiling of ₹15,000, with a pension contribution rate of 8.33% applicable to this ceiling. “We are trying to increase this limit of ₹15,000,” the Minister stated, noting that a suggestion regarding this change has already been submitted to his office. Discussions are ongoing within the Ministry about increasing the minimum pension under the EPS.
When questioned about delays in distributing higher pensions to applicants following a Supreme Court verdict, Mr. Mandaviya assured that the EPFO’s platform would be reviewed shortly. He mentioned the forthcoming implementation of ‘mission 3.0’ to assist subscribers more effectively.
ELI Scheme
In addition to the changes regarding the EPFO, the Minister indicated that the Ministry would present a Cabinet note on the employment-linked incentive (ELI) scheme that was outlined in the Union Budget. “The Ministry is finalising a Cabinet note on the ELI scheme, and it will soon be submitted to the Cabinet for approval,” he stated. Collaborative discussions with the Corporate Affairs Ministry are ongoing to finalize the details of the internship scheme.
Moreover, the Minister reported that the eShram portal has successfully registered over 30 crore unorganised workers within three years. Plans are in place to link additional portals to the eShram system, allowing workers to search for job opportunities and access various social security schemes. “The portal will assist in identifying registrants who have not yet received benefits from various schemes, thus enabling targeted assistance based on their eligibility,” Mr. Mandaviya elaborated.
In a notable update regarding EPFO operations, the Minister revealed an increase in the auto claim settlement limit for partial withdrawals from ₹50,000 to ₹1,00,000. This facility now covers housing, education, and marriage, in addition to health-related withdrawals. He also noted a significant reduction in processing times for partial withdrawals, which comprise nearly 60% of total claims, decreasing from 10 days to just 3-4 days.
