Social Security

Pension Rights

Employee's Pension Scheme 1995 provides for both full and reduced/early pension. For full/superannuation pension, a worker must have reached 58 years of age with at least 120 months (10 years) of contribution. A person is entitled to partial pension at the age of 58 years with less than 120 months (10 years) of contribution. Early pension is granted at the age of 50 years with at least 120 months (10 years) of contribution.

Amount of old-age monthly pension is based on a member's pensionable service and earnings but it may not be less than 1,000 rupees per month. A lump sum of total employer and worker contributions plus accrued interest is paid as a partial pension. The early pension is a reduced form of full pension and full pension is reduced by 3% for each year the retirement is taken before 58 years.

 

The Labour Ministry has notified 8.65% interest rate on employees provident fund for 2018-19. 

Source: §12 of Employee's Pension Scheme 1995

 

Non-Standard Workers' Rights on Old Age Pensions - Platform workers

While currently, no law covers platform workers as such, the draft Code on Social Security 2019 has the following provision: "The Central Government may formulate and notify, from time to time, suitable social security schemes for gig workers and platform workers on matter relating to:- (a) life and disability cover; (b) health and maternity benefits; (c) old age protection; and (d) any other benefit as may be determined by the Central Government" The Draft Social Security Code also refers to the role of aggregators.

An aggregator is defined as ""a digital intermediary or a market place for a buyer or user of a service to connect with the seller or the service provider." Hence, once approved, the central government will also frame rules about the role of ‘aggregators’ in the social security scheme."

Dependents' / Survivors' Benefit

Dependents/Survivors' Pension is paid to the family in the event of death of a worker who  dies while in service after contributing for at least one month into the Employees' Pension Fund;  has attained the age of 58 years with 120 months of contributions; and  has started receiving pension

In any of the above mentioned cases, the amount of minimum monthly pension for widow(er) is 450 rupees. The minimum monthly pension for children is 150 rupees (or 25% of the amount admissible to the widow(er), whichever is higher) payable until the child attains the age of 25 years (no limit with a total and permanent disability). In the case of full orphans, pension is equal to 75% of the pension admissible to the widow(er). The minimum monthly pension for full orphan can't be less than 250 rupees.

Source: §16 of Employees' Pension Scheme 1995

Non-Standard Workers' Rights on Survivors' Benefits - Platform workers

While currently, no law covers platform workers as such, the draft Code on Social Security 2019 has the following provision: "The Central Government may formulate and notify, from time to time, suitable social security schemes for gig workers and platform workers on matter relating to:- (a) life and disability cover; (b) health and maternity benefits; (c) old age protection; and (d) any other benefit as may be determined by the Central Government" The Draft Social Security Code also refers to the role of aggregators.

An aggregator is defined as ""a digital intermediary or a market place for a buyer or user of a service to connect with the seller or the service provider." Hence, once approved, the central government will also frame rules about the role of ‘aggregators’ in the social security scheme."

Invalidity Benefit

Invalidity benefit is provided to a worker assessed with a permanent and total disability as the result of an occupational injury and has at least one month of contributions.

Amount of invalidity pension is based upon the  member's pensionable earnings.   The minimum amount of invalidity pension is at least 250 rupees or a lump sum of total employee and employer contributions plus accrued interest.

Source: §12 of Employees' Pension Scheme 1995

Non-Standard Workers' Rights on Invalidity Benefits - Platform workers

While currently, no law covers platform workers as such, the draft Code on Social Security 2019 has the following provision: "The Central Government may formulate and notify, from time to time, suitable social security schemes for gig workers and platform workers on matter relating to:- (a) life and disability cover; (b) health and maternity benefits; (c) old age protection; and (d) any other benefit as may be determined by the Central Government" The Draft Social Security Code also refers to the role of aggregators.

An aggregator is defined as ""a digital intermediary or a market place for a buyer or user of a service to connect with the seller or the service provider." Hence, once approved, the central government will also frame rules about the role of ‘aggregators’ in the social security scheme."

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