An important meeting of EPFO is scheduled for today, and reports suggest that a decision may be made regarding a reduction in the deposit interest rate. This could potentially shock crores of private-sector employees. There has been a long-standing demand to increase the minimum pension under the Employees Provident Fund Organization (EPFO) for private sector workers.

In September 2014, the government set the minimum pension at Rs 1,000 under the Karmatari Pension Scheme (EPS) operated by EPFO. Under the EPF scheme, employees contribute 12% of their basic salary to the Provident Fund, with employers matching the same amount. Out of the employer’s contribution, 8.33% goes to the EPS, and 3.67% is deposited in the employee’s account.

Various Demands of EPFO Members

The pensioners’ organization, the EPS-95 Movement Committee, has stated that Union Labor Minister Mansukh Mandaviya has assured timely action on their demands, including an increase in the minimum pension under EPS-95. According to a statement issued by the organization, the central government has taken a positive approach toward the long-pending demands of over 78 lakh pensioners covered under EPFO across the country.

As per the statement, apart from increasing the minimum EPS pension, the organization has also demanded free medical facilities for retired employees and their spouses, along with improvements in applications for higher pension benefits.

Will the Minimum Pension Increase in 2025?

Ahead of Budget 2025, a delegation of EPS-95 retired employees met Finance Minister Nirmala Sitharaman and reiterated their demand to raise the minimum pension to Rs 7,500 per month, along with the addition of a dearness allowance (DA). According to the EPS-95 National Movement Committee, the Finance Minister assured them that their demands would be considered. Pensioners have been continuously demanding a pension increase for the past 7-8 years.