Employees’ Old-Age Benefits Act
🧾 Employees’ Old-Age Benefits Act, 1976 – Part I For Business & HRM Students Purpose : To provide financial security to employees in old age, retirement, disability, or upon death through pensions and benefits. 8.1 Employees’ Old-Age Benefits Contribution Rules, 1978 Definition: These rules govern the payment, collection, and management of contributions made by employers and employees to the EOBI fund. Key Features: Employer contributes 5% of minimum wage Employee contributes 1% of minimum wage Payments are made monthly to EOBI fund Example: If minimum wage is Rs. 32,000/month, employer contributes Rs. 1,600, and employee contributes Rs. 320. Business Advantage: Enhances employee retention Demonstrates corporate social responsibility 8.2 Employees’ Old-Age Benefits Types of Benefits: Old-Age Pension (on retirement at 60 years for men, 55 for women) Invalidity Pension (due to permanent disability) Survivor’s ...