Government releases Rs 2,000 crore for pension scheme

The union government has released Rs 2,000 crore to the Employees' Pension Scheme as its contribution for the year 2015-16, Minister of State for Labour and Employment Bandaru Dattatreya said on Monday.

"This is in addition to the Rs 250 crore contributed by the central government as grant-in-aid for providing minimum pension of Rs 1,000 to the pensioners of Employees' Pension Scheme, 1995", the minister said in a statement.

The minimum pension for the EPS pensioners was increased to Rs 1,000 per month in September last year.

"It is necessary to infuse additional amount by the central government to sustain the continuance of the minimum pension", the statement added.

The contribution of central government is calculated at the rate of 1.16 per cent of the monthly wages of the members contributing to the scheme.

This is in addition to the funding by the employers covered under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, contributing 8.33 per cent of the monthly wages of the members of the scheme.