Consider the following statements regarding ‘Pradhan

Solution

• “There is no wage limit for organisations to be covered under this scheme.” • False. The scheme targeted new employees earning up to ₹15,000 per month (basic + dearness allowance) to be eligible.  • So there is a wage limit for the eligible employee to qualify for the scheme. •  “Government will pay both employees’ and employers’ contribution towards EPF and EPS.” • Partially true, but not exactly as stated. Under PMRPY: o The government pays the employer’s contribution to the Employees’ Pension Scheme (EPS) (8.33 %) for new employees for the first three years.  o In the textile sector, the government also pays the employer’s EPF contribution (3.67 %) besides the EPS contribution.  o It does not say that the government pays the employee’s contribution to EPF/EPS. o However, later revisions (from 1 April 2018) appear to state the government pays the full employer’s contribution (12% approx) to EPF + EPS for eligible employees.  • So the statement “Government will pay both employees’ and employers’ contribution” is incorrect because it is about employer’s contribution (and not employee’s contribution) and it is restricted by eligibility. •  “It is implemented by Ministry of Labour and Employment.” • True. The scheme is implemented by the Employees’ Provident Fund Organisation (EPFO) under the oversight of the Ministry of Labour & Employment.