Social Security
Pension Rights
Social security laws provide for both full and partial/early pension. For full pension, a worker must have attained 60 years of age (55 years for women) with at least 15 years of contributions. A reduced pension is paid to the workers with ages from ages 55 to 59 (men) or ages 50 to 54 (women) with at least 15 years of contributions. Old-age pension is 2% of the insured worker's average monthly earnings in the last 12 months multiplied by the number of years for which contributions have been made. As for the early/partial pension, full pension is reduced by 0.5% for each month that the pension is taken before retirement age (So, a worker taking pension after 55 years of age gets only 70% of the full pension). If a worker does not meet requirements of full or partial pension, there is also an old-age grant. The minimum monthly pension from EOBI has been raised from Rs. 3,600 to Rs. 5,250 per month, effective from 01 April 2015.
(Section 22 of the Employees' Old Age Benefits Act, 1976)
Dependents' / Survivors' Benefit
Social Security laws provide for survivor benefit (these include dependents including widow, widower, children). The deceased worker must be a pensioner at the time of death. 100% of the deceased minimum pension is distributed equally among deceased's spouses. If spouses are not alive, this is distributed among orphans. In the absence of spouse and orphans, deceased's parents are paid this pension up to 5 years after the death of a worker. The minimum monthly pension from EOBI has been raised from Rs. 3,600 to Rs. 5,250 per month, effective from 01 April 2015.
(Section 22-B of the Employees' Old Age Benefits Act, 1976)
Invalidity Benefit
The above acts provide for invalidity benefit in the case of non-occupational accident/injury/disease resulting into permanent invalidity. If a worker is assessed with 67% loss in earning capacity, he/she is paid 2% of the average monthly earnings in the last 12 months multiplied by the number of years of covered employment. The minimum monthly pension from EOBI has been raised from Rs. 3,600 to Rs. 5,250 per month, effective from 01 April 2015.
(Section 23 of the Employees' Old Age Benefits Act, 1976)