S Sudhakar Reddy, chairman of the committee said the parliamentary group has recommended the government that it should come out of its slumber and retrograde approach by adapting the opportunities being thrown by the new employment scenario of high wages and revise the wage ceiling for coverage under EPFO to Rs. 15,000 without any delay.

The current wage ceiling of Rs. 6,500 was last revised on June 1, 2001, which has lost the relevance in view of the rapid transformation that has taken place in India's economy leading to substantial increases in the wages of employees. The employees provident scheme, 1995 is a contributory scheme wherein the employers' contribution towards the pension of the employee is diverted (8.33 percent) from the total contribution of 12 percent made towards the social security obligations. The government doesn't take any contribution from employees and it contributes 1.16 percent to the pension fund. None of the two contributions has been revised for the last 14 years.

The committee in its report presented in the Lok Sabha said that the formula regarding rate of contribution should be revised at periodic intervals wherein the rate of contribution from the government should at least be fixed at half of the rate of contribution, which is being made by the employer or the employee towards the pension scheme.

During its examination the committee realised the fact that no data regarding the figures of pensioners who did not opt for erstwhile family pension scheme 1971 but have joined the new EPS, 1995, has been maintained on the ground that number of such persons are very few and most of them would have completed more than 37 years in service and got the due benefits.

The committee has strongly lamented the government's approach expressing shock at the irresponsible way vital statistics relating to social security are being handled by the organization. It has asked the government to develop a database of the existing members as well as the new entrants to the scheme. It has also recommended the government to provide smart cards to members.

The parliamentary group during the course of its examination also deliberated upon the issue of linking pension with dearness allowance, restoring commutation facility and amending EPS 1995, recommended the government to shed its lackadaisical approach towards the welfare of the worker and take positive steps for linking present EPS with price index, restore commutation facility and amend the scheme as such having bearing on rate of contribution, wage ceiling and also fix a reasonably decent amount as minimum pension.

Of the total 43 crore workforce of India only 4.44 crore workers are covered under employee provident fund. The standing committee has hence recommended the government that keeping pace with the emerging employment trends, it would not only be desirable but also befitting if the concept of having schedule of industries for coverage along with the threshold limit is promptly done away with and all the workers are brought under the purview of EPS scheme. It has asked the government to set up separate pension division and grievance redressal mechanism for pensioners.

On the sordid plight of workers of the state-run Hindustan Machine Tools, which has been shut for quite a long time, Sudhakar Reddy said the committee has recommended issues pertaining to problems of workers be immediately addressed with specific attention of wages, payment of arrears following wage revision of 1992 and suitable career avenues for the workers of country watch-maker giant. #