The income of EPS-95 pensioners is now falling far short of the rapidly rising inflation in the country. From medicines to daily expenses, everything has become more expensive, but pensions remain stagnant. When the crucial issue of whether the government would increase the minimum pension from ₹1,000 to ₹7,500 was raised in Parliament, millions of elderly people were filled with hope. However, the government’s response fell short of its expectations.
Question from 80 Lakh Pensioners
In the Lok Sabha, Ballia MP Suresh Gopinath Mhatre directly questioned the government whether an increase in the minimum pension for EPS-95 was being considered. He emphatically reminded that nearly 80 lakh pensioners have been demanding for years that the Employees’ Pension Scheme (EPS), launched in 1995, was intended to provide a fixed income to the elderly. However, a pension of ₹1,000 per month is insufficient for a dignified life. For the past ten years, pensioners have been demanding through protests and rallies that pensions be increased, dearness allowance (DA) be added, and payments be rationalized in line with inflation.
Also Read-Indian Railways New Strategy: Two Special Trains to Reduce Waiting List, Check Routes & Timings
Government’s Straightforward and Clear Answer
Union Minister of State for Labor and Employment Shobha Karandlaje categorically stated in the House that the government has no proposal to increase the minimum pension. She clarified that the fund assessment conducted in 2019 found the EPS fund to be in actuarial deficit. This means that the fund does not have enough money to meet future pension liabilities.
The Minister also explained that the EPS pension is not like the government’s salary-based scheme, where DA is automatically added. It is a contribution-based model, where pensions can only be paid from the fund in which contributions from employees and employers have accumulated. The government also stated that the guaranteed pension of ₹1,000 is also being funded through additional budgetary support, so increasing the pension is not currently feasible.
Why is there such a strong demand
EPS-95 pensioners are those who worked in low-paying jobs and have only their pension as a source of support after retirement. While government employees receive periodic increases in their salaries and DA, these private and unorganized sector pensioners feel left behind. They consider the ₹1,000 amount to be derogatory for a respectable life and have been demanding financial security.