EPFO Update – PF Employees to Get Rs 3000 Pension! Know the Required Eligibility

New Delhi: A question currently weighing on the minds of all PF (Provident Fund) subscribers is whether their minimum pension amount will be increased. Currently, the minimum amount received under the EPS (Employees’ Pension Scheme) stands at 1,000 rupees. However, there are proposals under consideration to raise this figure to 3,000 rupees. This development has kindled hope among lakhs of retired employees in the private sector.

This increase would primarily provide assistance to low-income pensioners. The government could give its final approval to this measure at any time. Although no official statement has been issued yet, media reports are making these claims. One can also review the eligibility criteria and essential rules associated with this scheme.

What is the Minimum Pension under EPS?

Under the Employees’ Pension Scheme, the current minimum pension amount is 1,000 rupees. For many retired employees in the private sector, this sum is so meagre that they struggle to cover daily expenses such as food, medicines, rent, and healthcare. Furthermore, driven by rising inflation, pensioners have been demanding an increase in this amount for several years.

Consequently, the government appears to be actively considering proposals to raise the minimum pension amount. Discussions are currently underway regarding potential new pension amounts, which include figures such as 1,500 rupees, 2,000 rupees, 2,500 rupees, and even 3,000 rupees.

Eligibility for Receiving a Pension

To avail of pension benefits under the EPS, an employee must have completed a minimum of 10 years of service. If the service period is less than 10 years, the employee will not be eligible to receive pension benefits under the EPS. It is also mandatory to have contributed to the fund through the EPFO ​​(Employees’ Provident Fund Organisation) during one’s tenure of employment. The pension amount is primarily calculated based on a monthly salary ceiling of up to 15,000 rupees.

How ​​is the EPS Pension Calculated?

Specifically, this is calculated as the average salary over the past 5 years—that is, 60 months—multiplied by the number of years of service, and then divided by 70. Furthermore, employees who have completed more than 20 years of service are granted a bonus of two additional years in the pension calculation. Consequently, an individual with a longer tenure and a higher salary is entitled to a more substantial pension amount compared to someone who has worked for fewer years.

Moreover, based on a salary ceiling of ₹15,000, the pension amount increases in tandem with the number of years of service. For instance, an employee with 10 years of service could receive a monthly pension of approximately ₹2,143.