As per a confirmation from the Ministry of Labour & Employment, the Employees’ Provident Fund Organisation (EPFO) has released Rs 868 crore pension in addition to Rs 105 crore in arrears owing to restoration of commuted value of pension.
The Government has accepted the demand of workers to allow restoration of commuted value of pension after 15 years. This is a demand that workers have been making for a long time now, and thanks to the recommendation of the Central Board of Trustees (EPFO), the same has finally been accepted.
This provision is a major and welcome step for pensioners under EPS-95.
In the past, in the absence of the provision for restoration of commuted pension, the pensioners continued to get reduced pension due to commutation lifelong. There are over 65 lakh pensioners being served by EPFO via its 135 regional offices. Even during the lockdown, the EPFO staff had been striving to process pension payments on time so that the pensioners received their pensions in their bank accounts on time.
The Centre had earlier announced that it will provide Rs 2,500 crore EPF support for businesses and employees for the months of March, April and May. The same will be extended up to August now.
With an aim to provide liquidity to over 72 lakh employees and more than 3.5 lakh establishments, the Government had announced the payment of 2 per cent of employer and 12 per cent of employee contributions towards the EPF accounts of the eligible establishments. This was done under the Pradhan Mantri Garib Kalyan Package (PMGKP), providing relief of about Rs 2,500 crore. In addition, the statutory PF contribution of both employer and employee has been reduced to 10 per cent from the usual 12 per cent across for all establishments for the next three months.