The Employees’ Provident Fund Organisation (EPFO), a non-constitutional body that promotes employees to save for retirement, witnessing a case for substantially in increasing the retirement age in India. This is aimed at making the pension system viable within the country and supply sufficient retirement advantages, according to a report published in The Economic Times.
“Increasing the retirement age, going forward, could be considered in line with the experience of other countries and will be key to the viability of pension systems,” EPFO said in its Vision 2047 document.
“Raising the retirement age would mean deposit of higher quantum pensions for longer duration with EPFO and other pension funds in the country and will help offset inflation,” a senior government official told ET, explaining the suggestion.
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The vision document has been shared with the states and discussions will soon start with other stakeholders including the employers and the employees as well.
Labour economist KR Shyam Sundar told ET that the transfer can have combined influence. “It will ensure that the family income of aged workers sustain the aggregate demand and provide growth impetus, while also saving the age discrimination present in the labour market today,” he stated.
“But on a net basis, raising the retirement age in a demand constrained economy may not prove to be efficient and equitable as it will keep the youth waiting for a longer period to get a job and there will be skill wastage,” Sundar added.
The provisional payroll data of EPFO released on 20 August, 2022 highlights that EPFO has added 18.36 lakh net members in the month of June, 2022.
For the month of June, 2022 the net member addition has increased by 9.21% as compared to the previous month of May, 2022. Year-on-year comparison of payroll data reflects that June, 2022 has registered an increase of 5.53 lakh in terms of net member addition comparing the corresponding month during last year in 2021.
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