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The Employees Provident Fund Organisation (EPFO) has put on hold payment of a minimum ₹ 1,000/month from April 1, 2015. The decision, set to affect 32 lakh out of a total of about 50 lakh pensioners, has been slammed by trade unions.
“While the matter is referred to the Government for a decision on the continuation of minimum pension provision beyond 2014-15, a direction is yet to be received. Under the circumstances, EPFO cannot go beyond the directions of the Government… and the pension from the month of April 2015 will be released at earlier rates i.e. without the minimum pension provision,” says an EPFO circular, dated April 9.
A minimum pension rate of ₹ 1,000/month was announced by the UPA government but could not be implemented because of the general elections in 2014. In September last year, Prime Minister Narendra Modi announced at a rally in Bengaluru that the scheme would be effective from October 1, 2015.
"There are 32 lakh people who are former employees of the Government of India who used to get pensions from ₹ 50 to ₹ 200. An old person who gets such a low pension will never be able to lead a life of dignity, thus we took a decision that the minimum pension that can be given will be ₹ 1,000", he had said.
Six months later, the EPFO has directed all its zonal offices to put on hold the ₹ 1,000 minimum pension and ensure that “no over payments take place.”
Trade unions, have, meanwhile, criticised the government for the “unwanted delay in the issuance of orders” affecting old workers and widows, some of whom get a measly ₹ 150-500/month as pension.
“Trade unions had at that time objected, pointing out that the limited order will be used against the workers by stopping it at the will of the government. But, Government had assured us that it will not be stopped,” said A K Padmanbhan, president, Centre of Indian Trade unions (CITU).
He said the circular has given rise to serious concern on the intentions of the government, as it comes in the background of various “retrograde” changes proposed in EPF schemes.
Hind Mazdoor Sabha Secretary A D Nagpal said all central trade unions would take up the issue with the Prime Minister and write a letter to him demanding resumption of the scheme. “We will also launch a nation-wide protest against this decision,” he added.
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