Employees’ unions have consistently advocated for an increase in the minimum pension amount established under the Employees’ Pension Scheme (EPS) of 1995. Both employees and various stakeholders have voiced their requests regarding this issue. Recently, MP Asaduddin Owaisi raised a question in the Lok Sabha concerning whether the government has received any proposals aimed at raising the minimum pension under EPS, 1995, and he requested details about such proposals.
In response to inquiries about the potential increase in the minimum pension, Minister of State for Finance Pankaj Chaudhary confirmed that the Ministry of Labour and Employment has indeed received requests for an increase in the minimum pension amount under the EPS, which includes input from both stakeholders and trade unions.
Owaisi further inquired whether the government has conducted any evaluations of these requests for an increase in the EPS pension, particularly in light of the findings presented in the 30th report of the Standing Committee on Labour, Textile and Skill Development. He also sought information regarding the nature of these assessments.
Minister Chaudhary explained that the EPS, 1995 operates as a ‘Defined Contribution-Defined Benefit’ social security scheme. The Employees’ Pension Fund is financed through two main contributions: (i) an employer contribution of 8.33% of the monthly salary, and (ii) a Central Government contribution of 1.16% of the salary, applicable up to a monthly salary of Rs. 15,000. The fund’s status is evaluated annually in accordance with paragraph 32 of the EPS, 1995.
As for the minimum pension stipulated under EPS 1995, the central government set a minimum pension of Rs 1,000 per month for pensioners under this scheme in September 2014. However, last year, the labour ministry submitted a proposal to the finance ministry to double the minimum pension to Rs 2,000 per month under EPS-95.
