Employees working in private companies are always worried about their pension. Unlike government employees who get a good pension after retirement, private employees do not receive that much. But now, there is good news. Employees working in private companies may soon get a minimum pension of ₹7,500. Right now, the minimum pension is ₹1,000. However, there is a lot of discussion going on about increasing it.
Minimum Pension May Increase Under Employees’ Pension Scheme
The Employees’ Provident Fund Organization (EPFO) runs the Employees’ Pension Scheme (EPS) for private sector employees. A part of the PF amount deducted from your salary goes into this pension scheme. The Employees’ Pension Scheme started in 1995.
Talks Are On to Raise Minimum Pension
The Employees’ Pension Scheme is managed by EPFO, which provides pensions to its members. To get this pension, it is necessary to contribute to PF for at least 10 years. If you are a private employee and have contributed for 10 years, you are eligible for a pension. The amount of your pension depends on your salary. Right now, the minimum pension is ₹1,000, but there are discussions to increase it to ₹7,500.
EPFO Has Made Full Preparations
According to media reports, EPFO has already completed preparations for this change. The government may soon approve this proposal. PF pension is given after the age of 58, which is also the retirement age for most private sector employees. However, some companies may allow employees to work beyond 58 years.
Big Relief for 78 Lakh Pensioners
If the minimum pension is raised to ₹7,500, it will benefit around 78 lakh pensioners. Reports also suggest that the government may include a Dearness Allowance (DA) in this pension amount to help tackle inflation.