‘Need to widen pension net to those earning over 15,000’

MUMBAI: There is a need to extend pension coverage to workers earning above Rs 15,000 a month, said M Nagaraju, secretary in the department of financial services, calling the current framework inconsistent and inadequate for large sections of salaried employees in the private sector.At the CII Financial Summit, Nagaraju said those earning below Rs 15,000 are mandatorily enrolled in the EPF system, while those earning more have no such requirement. “For some of these people in the private sector who are earning more, I realise that they don’t have any pension fund, which is very bad,” he said. He added that leaving out this segment risks creating a generation without retirement security. “We need to look at how we can secure the future of those who earn a little more also and have a secure future not depending on the children at the time of old age,” he said. He noted that this gap mirrors similar exclusions seen earlier in the healthcare system.