BMS logo. File photo
BMS logo. File photo

BMS against proposal to allow workers to convert from EPS to NPS

ANI | Updated: Sep 26, 2019 17:26 IST

New Delhi [India], Sep 26 (ANI): The Bharatiya Mazdoor Sangh (BMS), an affiliate of RSS, has opposed the proposed amendment to EPF law that will allow workers to convert from EPS (Employees Pension Scheme of EPF) to NPS (National Pension Scheme).
The BMS conveyed its views at the tripartite consultation meeting of Labour Ministry held in Delhi.
BMS General Secretary Virjesh Upadhyay said the proposed changes in the law were against the interests of the common man.
"We are opposed to the proposed amendment to EPF law because these are against the interests of workers. Many of the EPS subscribers are poor people and workers who cannot choose between the two options. It will be like a compulsion," Upadhyay told ANI.
The tripartite consultation meeting was chaired by Labour Minister Santosh Gangwar and attended by representatives of government, employers and workers.
In a press release, BMS said none of the demands of trade unions has been included in the proposed amendment.
Opposing inclusion of National Pension Scheme into the EPF law, BMS said NPS is risky and market-linked and return in EPS is much more than NPS as per the study of EPFO.
"EPS has more benefits like those to family members, insurance, widow pension etc. NPS has a lock-in period of 15 years for withdrawal and it is only a savings scheme with the uncertainty of what will be the return at the time of retirement," the release said.
It said that EPS is intended to provide social security to the lower-income group.
"The government has not come out with any study about the comparative advantage of the new amendment to workers. Such a proposal to bring NPS in EPF law was rejected by BMS and other trade unions in a consultation meeting held in 2015," the release said.
It said BMS has also opposed "dilution" of latest Supreme Court judgement on the question of inclusion of allowances in the calculation of contribution.
"The proposed amendment gives a list of allowances to be excluded from the definition of wages which is against the interest of workers," it said.
BMS also opposed the proposed amendment that erring employers need not pay arrears after a lapse of five years of disputed litigation.
It also opposed the reduction of PF contribution rate from 12 per cent to 10 per cent and "giving arbitrary power to the government to fix the rates".
"The amendments will only help erring employers and private players and is against the interest of workers," the release said.
BMS also called on the government to constitute EPF courts for employees like ESI courts.
It welcomed proposals to give priority to the payment of EPF contribution over other debts and to increase penalties.
BMS was represented at the meeting by its president Saji Narayanan, Vice President Jagadishwar Rao and Zonal Organising secretary Pavan Kumar apart from Upadhyay. (ANI)