Ministry of Finance

Posted On: 01 FEB 2019 1:34PM by PIB Delhi

During the last 5 years, the minimum wages of labours of all classes have been increased by 42% which is the highest increase so far. While presenting the Interim Budget 2019-20 in Parliament today, the Union Minister for Finance, Corporate Affairs, Railways and Coal, Shri Piyush Goyal said that the high growth and formalistation of the economy has led to the expansion of employment opportunities as shown in EPFO membership, which has increased by nearly 2 crore in 2 years reflecting formalisation of the economy and job creations.

Shri Goyal said that the 7th Pay Commission recommendations were implemented and New Pension Scheme (NPS) has been liberalized. The Government’s contribution in NPS had been increased 10% to 14%. The limit of gratuity payment has been increased from ₹ 10 lakh to ₹ 20 lakh. The limit of eligibility cover of ESIC has been increased from ₹ 15,000 per month to ₹ 21,000 per month. The minimum pension for all labours has been fixed at ₹ 1,000 per month. In case of the death of a labour during the service, the EPFO contribution has been increased from ₹ 2.5 lakh to ₹ 6 lakh. The honorarium of all classes of labours under Anganwadi and Asha scheme has been increased by about 50%.

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GG/DSM/RM/SK/IA

Minimum wages increase expands worker benefits; pension, gratuity and social security coverage strengthened under recent labour reforms. A series of labour and social security adjustments increased the statutory floor and coverage of worker benefits: minimum wages rose by 42% over five years; New Pension Scheme contributions by the Government were raised from 10% to 14%; gratuity ceiling increased to twenty lakh; ESIC eligibility and EPFO death-time contribution coverage were expanded; a minimum pension floor was set and honoraria for Anganwadi and ASHA workers were substantially increased.