After Pension Scheme, Government Plans Provident Fund Coverage For Unorganised Sector Workers

After Pension Scheme, Government Plans Provident Fund Coverage For Unorganised Sector WorkersUnorganised sector workers. (representative image) (Sakib Ali/Hindustan Times via Getty Images)

Having brought a scheme to provide a pension cover to unorganised sector workers earlier, the government is now planning to provide them with Provident Fund (PF) fund coverage too, TNIE has reported.

The Pradhan Mantri Shram Yogi Maandhan (PMSYM) provides a minimum assured pension of Rs 3000 per month for workers who can opt into the scheme between ages 18-40 if they have a monthly income less than Rs 15,000.

Now, the Labour Ministry is looking at amendments to the Employees’ Provident Fund and Miscellaneous Provident Act to allow for unorganised sector workers to be covered by the PFs.

“With the change in the industrial and economic scenario of the country leading to increased mobility of labour and outsourcing of services, need has been felt for introducing some amendments in the provisions of the Act,” the proposed draft amendment reads.

A ministry official also said that the subscribers may be given a choice between the EPFO and National Pension Scheme (NPS). The aim of the amendment is to allow for employees’ rates of contribution less than 12 per cent as currently mandated.

“The government will also decide, through a notification, whether the employer is liable to contribute or not,” the official added.