NEW DELHI: Formal sector workers may soon have an option to choose between EPF scheme run by retirement fund body EPFO and New Pension Scheme (NPS) and a proposal in this regard is expected to be discussed by the Cabinet next week.

The proposal is part of the bill to make comprehensive amendments to the Employees' Provident Funds and Miscellaneous Provisions Act 1952.

"The tripartite discussion on the bill is over and it would be put up for Cabinet's approval sometime next week," a source said.

One of the proposed amendments also authorise Central Government to waive off mandatory PF contributions by workers with certain threshold of monthly income.

The source further revealed that the Employees' Provident Fund Organisation (EPFO) will be regulatory body for monitoring the implementation of the scheme as there could be cases where worker neither go to EPF nor NPS.

The proposal to provide these options of choosing social security schemes to workers was announced by the Finance Minister Arun Jaitley in his Budget speech for 2015-16.