Pensioners alert! EPFO releases Rs 868 crore pension, Rs 105 crore arrears - Check latest development

In a major development, Ministry of Labour & Employment has confirmed that EPFO has released  Rs 868 crore pension along with Rs 105 crore arrears on account of restoration of commuted value of pension. "On the recommendation of Central Board of Trustees (EPFO), the Government of India accepted one of the long standing demands of workers to allow restoration of commuted value of pension after 15 years," a statement by Ministry of Labour & Employment said.

Earlier there was no provision for restoration of commuted pension and the pensioners continued to receive reduced pension on account of commutation lifelong. This is a historical step for the benefit of pensioners under EPS-95.

EPFO has more than 65 lakhs pensioners catered through its 135 regional offices. EPFO officers and staff battled all odds during this Covid-19 lockdown period  and processed pension payment for May,2020  to ensure credit of pension in the bank account of pensioners on schedule.

Earlier, on May 13, Finance Minister Nirmala Sitharaman had said that the Centre will provide Rs 2,500 crore EPF support for businesses, workers for three more months.  The scheme was provided earlier for the salary months of March, April and May. Consequently, this support will be extended by another three months for the salary months of June, July and August.

Under the Pradhan Mantri Garib Kalyan Package (PMGKP), the Finance Minister said that payment of 12 per cent of employer and 12 per cent of employee contributions was made into the EPF accounts of the eligible establishments. The scheme will provide liquidity relief of Rs 2,500 crore to 3.67 lakh establishments, benefitting 72.22 lakh employees.

Furthermore, the minister had announced that statutory PF contribution of both employer and employee has been reduced to 10 per cent from the existing 12 per cent across all establishments covered by the EPFO for the next three months. CPSEs and state PSUs will, however, continue to contribute 12 per cent as employer contribution. The scheme for lower EPF contribution will be applicable to workers who are not eligible for 24 per cent EPF support under the PM Garib Kalyan Package and its extension. This scheme is estimated to provide relief to about 6.5 lakh establishments covered under the EPFO and benefit about 4.3 crore such employees. It will provide liquidity of Rs 6,750 crore to employers and employees over three months.