EPFO: Private sector workers have been asking for a higher minimum pension from the Employees’ Provident Fund Organisation (EPFO) for quite some time. Back in September 2014, the central government set the minimum pension at Rs 1,000 for the Employees’ Pension Scheme (EPS) managed by the EPFO.
In the EPF system, employees contribute 12 percent of their basic salary to the Provident Fund, and companies match that amount. Out of the employee’s contribution, 8.33 percent goes to the EPS, while 3.67 percent is directed to the EPF account.
Major decision can be taken
The EPS-95 Agitation Committee, which represents pensioners, has mentioned that Union Labour Minister Mansukh Mandaviya has promised to take action on their requests, including raising the minimum pension under EPS-95.
Government has shown positive response
According to a statement from the pensioners’ group, the government has shown a positive attitude towards the long-standing requests of over 78 lakh pensioners under the EPFO nationwide. Besides increasing the minimum EPS pension, the pensioners are also asking for free medical services for retirees and their spouses, as well as fixing mistakes in applications for higher pension benefits. The minister assured the group that these issues would be resolved soon. The EPS-95 National Movement Committee (NAC), which has been advocating for pensioners’ rights for many years, expressed hope that the minimum pension under EPS-95 will finally be updated after a decade.
Rs 1,000 to Rs 7,500?
For the past 7-8 years, pensioners have been persistently requesting an increase in their pension, aiming to raise it from Rs 1,000 to Rs 7,500, including the benefit of Dearness Allowance (DA). Additionally, they want free medical care for retired employees and their spouses. The government is also looking into a fixed interest rate plan for EPFO account holders, ensuring they receive stable returns regardless of market changes. Reports suggest that the EPF interest rate might be set between 8% and 8.25%.