EPFO Pension Hike- Big news for pensioners. For the last several years, pensioners have been demanding an increase in the minimum monthly pension available under the Employees’ Pension Scheme (EPS-95). Currently, this minimum pension amount is Rs 1,000 per month, but now this amount is likely to be increased to Rs 7,500.
The government has received several requests from trade unions, pensioners’ associations and public representatives to increase the minimum pension. This increase is very important to provide relief to pensioners in these times of inflation. A parliamentary committee has recommended to the central government to increase the minimum pension for private sector employees from Rs 1,000 to Rs 7,500.
What is the demand?
In 2014, the minimum pension was increased from Rs 250 to Rs 1,000. But due to rising inflation, this amount is not enough. Therefore, since then, trade unions and pensioners’ organizations have been demanding that this amount be increased to Rs 7,500. The Parliamentary Standing Committee on Labour has urged the government to increase the minimum pension under the EPS. They have said that there has been a significant increase in inflation since 2014 and there is a need to address the financial concerns of pensioners and their families.
Currently, a third party review of this scheme is underway, which is likely to be completed by 2025. A decision on the pension increase is expected to be taken after this review is completed. As of now, there has been no official announcement of pension hike before Diwali. The government has not given any deadline for this, but the government has made it clear that budgetary support will continue to ensure a minimum pension of Rs 1,000. 12 percent of the basic salary of the employees is deposited in EPFO every month and the same amount is deposited by the employer. One part of this goes to EPS for pension.