Volume : 1, Issue : 6, November - 2012

Empirical Study on Retirement Benefits of Government Employees and Private Sector Employees (Covered By EPF & MP Act) In India

Sukhen Kali

Abstract :

Retirement benefits form a very important part of the old age income security especially for salaried persons. At present, majority of the working force is not covered by formal old age income security schemes in India. Current pension and provident fund systems cover more or less 11 percent of the economically active labour force. This paper provides an overview of the occupational retirement benefit plans of the Government employees and the employees of private sector under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 in India. Employees of the government receive a different set of retirement benefits including indexed pensions, in contrast to Private sector employees who are covered under the mandatory occupational plans. This paper also attempts to compare the retirement benefits of the government employees and private sector employees and also trying to find out the reasons of the discrepancy of the benefits.