EPFO Pension Hike – The minimum monthly pension of Rs 1,000 under the Employee Pension Scheme could be increased to Rs 2,500. A decision on this could be made at a meeting of the EPFO’s Central Board of Trustees (CBT) scheduled for October 10-11 in Bengaluru.
If the proposal to increase pensions is passed at the meeting, it will be the first increase in 11 years. The minimum pension of Rs 1,000 per month was set in 2014 and has not been increased since. According to a report, more than 3 million pensioners are receiving the minimum pension.
Who can get pension?
Anyone who completes at least 10 years of continuous service and reaches the age of 58 years becomes eligible for regular pension under EPS.
If the member leaves the job midway, he can either withdraw his accumulated pension or choose a pension with a lower amount.
What is EPS 95 Pension Scheme?
1. The Employees’ Pension Scheme 1995 was launched by the EPFO on November 19, 1995. This scheme provides post-retirement pension to employees working in the organized sector.
2. The EPFO manages this scheme and guarantees that employees will receive a pension upon reaching age 58. Both existing and new members benefit from this scheme.
3. Regardless of your contribution to the Employee Pension Scheme, the Government of India has established a fixed minimum pension limit, which employees receive.
How is EPFO pension decided?
Pension is calculated using a fixed formula:
Pension = (Pensionable Salary × Pensionable Service) ÷ 70
Pensionable salary means average basic salary + DA in the last 60 months of service.
The maximum pensionable salary limit is Rs 15,000 per month. This means that a member with 35 years of service could receive a pension of approximately Rs 7,500 per month.
EPFO 3.0 will also be discussed in the meeting
In addition to the minimum pension revision, the CBT meeting will also discuss digital reforms such as EPFO 3.0. Key features include direct PF withdrawals from ATMs, instant withdrawals through UPI, and faster claim settlements