EPFO Update – PF Employees’ Pension Amount to Increase to Rs 9,000! Know the Update

EPFO Pension: There has been some discussion for some time that the Central Government may increase the minimum pension amount for PF employees. There are speculations that the Central Government may increase the minimum pension amount to a minimum of Rs. 9,000.

Currently, the minimum pension amount under EPS is Rs. 1,000. If this is increased to Rs. 9,000, it will increase to Rs. 8,000. Previously, this issue was limited to the government, but now it has reached the Supreme Court. This has once again brought the Employees’ Pension Scheme 1995 into the spotlight.

You need to know which employees will benefit from this. The EPS scheme is administered by the EPFO. There is a provision for monthly pension payments. Whether the pension amount will be increased or not has not been officially stated yet.

Benefits of EPS Pension

The Employees’ Pension Scheme 1995 is very special for private employees. This scheme was designed for private employees working in the organised sector. It is administered by the EPFO. An employee will be eligible for a pension only if they have served for a minimum of 10 years. After the age of 58, they will receive a monthly pension. Did you know that this is not linked to inflation?

How much pension is available under EPS 95?

Under the Employees’ Pension Scheme, the pension amount is determined based on salary and total service period. Currently, the minimum pension amount is ₹1,000. The government ensures this amount through budgetary support. This ensures that eligible pensioners receive at least this amount.

This means that if your contribution reduces your pension by ₹100, the government will pay the remaining amount. Regarding the maximum pension, the calculation is based on the current salary limit of ₹15,000.

If a person has completed 35 years of maximum pensionable service, the pension amount is ₹1000. Using the formula (15,000 × 35) / 70, the maximum pension is approximately ₹7,500 per month. However, the ₹7,500 limit applies only to general cases with a ₹15,000 salary cap and 35 years of service.

What did the government say?

Responding to a question in the Lok Sabha during the Budget session, Minister of State for Labour Shobha Kardalje acknowledged that trade unions and public representatives have demanded an increase in pensions. The government has not yet provided a timeline.

The government also clarified that EPS-95 is not a return-based scheme, but a fixed-contribution and fixed-benefit scheme. The pension fund is created from two main sources. First, the employer contributes 8.33 per cent of the employee’s salary.