Revamping Pensions: Higher Benefits for a Secure Retirement

The labour ministry plans to revamp Employees' Pension Scheme 1995 to allow higher member contributions for greater pension benefits. Currently, a portion of employer contributions funds the scheme. The government's focus on job creation accompanies these changes, with major infrastructure projects aimed at significant employment generation.

The labour ministry is poised to overhaul the Employees' Pension Scheme 1995, facilitating higher contributions from members to secure enhanced retirement benefits, a leading source disclosed.

Under the current system, 12 percent of employees' basic salary is directed toward the Employees' Provident Fund, with a portion of employer contributions supporting EPS-95.

Plans under consideration may permit increased employee contributions to EPS-95, alongside the government's push for job creation through substantial infrastructure projects expected to generate over 1.26 crore jobs nationwide.

(With inputs from agencies.)