Pension Alert: Great plan by labour ministry

The labour ministry is bringing a plan for small traders and unorganised workers under the ambit of the Employees Provident Fund Organisation (EPFO). The National Pension Scheme (NPS) for traders and self-employed and Pradhan Mantri Shram Yogi Maandhan (PM-SYM) for unorganised workers bring under the regulatory framework of the Employees Provident Fund Organisation.

"We are looking at bringing the Pradhan Mantri Shram Yogi Maandhan for unorganised workers and the National Pension Scheme for traders and self-employed persons under the administrative control of EPFO," an official from the labour ministry privy to the development told a leading publication.

According to another official, the discussion are currently going on as to whether the provident fund body needs to come up with a new scheme to provide its coverage to these categories or bring the two schemes within its ambit. In addition, the measure aims at rendering implementation of both the schemes simpler as well as more effective. The second official added that - "However, EPFO does not have the experience of handling individual contributions without the intervention of an employer. Hence, the move will require a lot of preparations,"