If you work in a private company and are always worried about a pension, then there is very good news for you. Now you too can get a good pension like government employees after retirement. According to media reports, the Employees Provident Fund Organization (EPFO) has made full preparations to increase the minimum pension available under the Employees’ Pension Scheme (EPS) from ₹ 1,000 to ₹ 7,500. This will be a revolutionary step, which will provide great relief to millions of private employees. Let us know about this news in detail and find out when it can be implemented.
What is the Employees’ Pension Scheme (EPS)
Start of EPS: This scheme was started in 1995 and is run by EPFO for private employees. A part of the PF (Provident Fund) deducted from your salary is deposited in EPS as pension. To get a pension, it is mandatory for the employee to have PF for at least 10 years. At present, the minimum pension available under this scheme is only ₹ 1,000, which is very low in today’s times.
Why is the pension being increased
EPFO had been considering for a long time that the minimum pension should be increased, so that private employees can also live a respectable life after retirement. According to media reports, there is now a discussion going on to increase it from ₹ 1,000 to ₹ 7,500 directly. If this proposal is approved, then about 78 lakh pensioners across the country will get direct benefit from it. It is also expected that the government can add dearness allowance (DA) to this new pension, which will further increase the pension amount.
When will this decision be implemented
According to sources, EPFO has made all its preparations regarding this proposal, and soon it can be placed before the government for approval. Generally, the retirement age in private companies is 58 years, after which the employee becomes entitled to a pension. Your pension is decided on the basis of your salary, but increasing the minimum pension limit will benefit everyone.
This decision will provide a great support to all those private employees who were worried about their future after retirement. This will be a step that will not only improve their financial condition but will also increase their confidence.