Get additional funds to implement SC order on higher provident fund pension: Panel to Centre

The Labour Standing Committee of Parliament, headed by senior Biju Janata Dal leader Bhartruhari Mahtab, has pulled up the Union Labour Ministry for underutilisation of the allocations meant for the Ministry’s schemes. The panel asked the Ministry to assess and work out the likely financial implication for implementing the Supreme Court judgment on higher provident fund pension and approach the Ministry of Finance for additional funds to enable timely payment of amounts that may become due. “The scheme wise analysis of utilisation of funds for the fiscal 2022-23 up to February 13, 2023 reveals that the Employee’s Pension Scheme and National Career Services are the only schemes which recorded expenditure up to 90% vis-à-vis RE provisioning whereas for most other schemes, the percentage utilisation has been substantially low,” the panel said. “The committee impress upon the Ministry to assess and work out the likely financial implication on implementing the judgment and approach the Ministry of Finance for additional funds, as may be needed so as to enable timely payment of amounts that may become due,” the report said. As gig and platform workers do not come under the purview of the Employees Provident Funds and Miscellaneous Provisions Act, the panel noted that the Centre for Labour Studies, National Law School of India University, Bengaluru, has been engaged for assistance in the framing of a new scheme for gig and platform workers as well as workers in the unorganised sector and a Memorandum of Understanding has also been signed by Employees Provident Fund Organisation with the NLSIU on January 23, 2023.