Pensioners of the EPS-95 (Employees Pension Scheme 1995) scheme under the EPFO (Employees Provident Fund Organization) have been demanding an increase in the minimum pension for a long time. Currently, the minimum pension under EPS-95 is fixed at just ₹1,000 per month, which is considered very low compared to the current inflation and rising cost of living. In such a situation, the government may take a big decision on this before Diwali.
A meeting will be held
According to media reports, the EPFO’s Central Board of Trustees (CBT) is holding an important meeting in Bengaluru on October 10th and 11th. This meeting will be chaired by the Union Labor Minister. The minimum pension increase, improvements to EPF and EPS accounts, and several other financial changes will be discussed. Decisions taken at this meeting will directly impact millions of pensioners across the country.
Minimum pension Rs 2,500?
According to sources, the government is considering increasing the minimum pension from ₹1,000 to approximately ₹2,500 per month. If implemented, this proposal would increase pensioners’ monthly income by approximately 150%. This change will primarily affect pensioners who currently receive the minimum pension. However, those already receiving higher pensions will not be significantly affected.
This increase in minimum pension will be no less than a relief package for the elderly, because rising inflation, electricity and water bills, medicine expenses and household needs have put a lot of pressure on the budget of senior citizens.
EPS-95 is a social security scheme under which employees’ employers contribute 8.33% of their salaries to a pension fund, while the government contributes 1.16%. Under this scheme, the government ensures that the pension fund remains unspent and that pensioners receive a regular income. The EPS fund is also evaluated annually to monitor pension disbursements.
Given the country’s ever-rising inflation and daily expenses, a ₹1,000 pension no longer meets even the basic needs of pensioners. Therefore, a minimum pension of ₹2,500 will provide a new layer of financial security for the elderly.