Do you work in a private company and are worried about your future pension? Then there’s some great news for you. Employees working in private companies are always concerned about their pensions. After retirement, they don’t receive a sufficient pension like government employees. However, new news has emerged that employees working in private companies may soon receive a minimum pension of ₹7,500. Currently, this amount is ₹1,000, but there is intense discussion about increasing it.
Increase in Minimum Pension under the Employees’ Pension Scheme (EPS)
The Employees’ Provident Fund Organization (EPFO) runs the Employees’ Pension Scheme (EPS) for private employees. Under this scheme, a portion of the amount deducted from employees’ PF (Provident Fund) is deposited for pension purposes, which is deposited into the EPS. The Employees’ Pension Scheme was launched in 1995.
Intense Discussion on Increasing Minimum Pension
The EPFO manages the Employees’ Pension Scheme. The EPFO provides pensions to its members through this scheme. However, to receive a pension, employees must have made PF deductions for at least 10 years. If you are a private employee and have made PF deductions for 10 years, you will be eligible for a pension. Your pension is based on your salary. Currently, the minimum pension amount is ₹1,000. There is strong talk of increasing it to ₹7,500, which would provide significant relief to retiring employees.
EPFO Completes All Preparations
According to media reports, the EPFO has completed all preparations for this major change. It is believed that the government may approve this proposal soon. PF pensions are paid after the age of 58. In private companies, the retirement age for employees is 58, although companies can extend this service period.
According to reports, if the minimum pension is increased to ₹7,500, it will provide significant relief to approximately 7.8 million pensioners. The government may also increase the Dearness Allowance (DA) on this pension, making it much easier to live after retirement. This step would be a strong step towards securing the financial future of private sector employees.
