The Employees' Pension Scheme 1995 - Government Must Act

Abstract

Pension is basically a social security to ensure a steady income for people when they are no longer in a position to earn income from employment. The history of the struggle of the working class of India for a pension scheme is a long one and CITU was always in the forefront in this struggle.

India does not have a universal social security system to protect the elderly against economic deprivation. Retirement benefits in India in one form or other, are available to only 11% of the working population. CITU has been persistently demanding pension as a third retirement benefit in addition to the contributory provident fund and gratuity. But much to the disappointment of the industrial workers, the government introduced a scheme by the name Employees' Pension Scheme (EPS 1995) w.e.f. 15th November 1995, replacing the then existing Family Pension Scheme 1971 for them by diverting a major portion of the employers' contribution to the Provident Fund to EPS, thereby reducing the PF benefit of the employee to make provision for an insignificant amount towards retirement pension.