There has been a long-standing demand to increase the pension under the Employees’ Pension Scheme (EPS). Many trade unions and pensioners’ organisations have been continuously urging the government to raise the pension amount.
In 2014, the Employees’ Provident Fund Organisation (EPFO) set a minimum guaranteed pension of ₹1000 for those EPFO members who contributed to the scheme for at least 10 years. However, despite repeated requests from trade unions and employee representatives, the government has not made any changes to the minimum pension amount under EPS. But now, there is hope again! The EPS, which started 30 years ago, is also known as EPS-95.
Parliamentary Committee Calls for Third-Party Evaluation of EPS
A standing committee of Parliament has asked the Ministry of Labor to complete a third-party evaluation of the Employees’ Pension Scheme (EPS) within a specified time frame. The committee, led by Bharatiya Janata Party MP Basavaraj Bommai, has set a deadline for the evaluation process to be completed by the end of 2025.
Request for Immediate Action on Pension Increase
The parliamentary panel has also urged the Ministry of Labor to “immediately start work” on increasing the minimum pension of ₹1,000 under EPS. The committee pointed out in its report that the cost of living has risen significantly in recent years, but the pension amount has remained unchanged.
30 Years of EPS
EPS was launched in 1995 with the goal of providing a permanent income to employees after retirement.
The committee emphasized that, after 30 years, a third-party evaluation of the scheme is necessary. It strongly recommends that this evaluation be completed by the end of 2025.
The Ministry of Labor has informed the committee that the process of conducting the first third-party review has begun through a Request for Proposal (RFP), and the work is ongoing. The committee was also told that no such review has been conducted for EPS before.
Need for Pension Increase in Line with Rising Costs
The report further stated, “Considering the significant increase in the cost of living in 2024 compared to 2014 and other related factors, there is a strong need to seriously consider increasing the pension amount.”
Ministry’s Response to the Committee
The Ministry of Labor told the committee that a proposal to increase the minimum pension to ₹2,000 was sent to the Finance Ministry in 2020, but it was not approved. The proposal was also part of the discussions leading up to the 2024-25 Budget.
Ahead of this year’s Budget, a delegation of retired EPS-95 employees met with Finance Minister Nirmala Sitharaman to demand an increase in the EPS pension to ₹7,500 per month. Following the meeting, the EPS-95 National Movement Committee reported that the Finance Minister had assured them that the government would consider their demands.
Continued Demands for Pension Hike
For years, employees’ unions have been calling for a higher pension for EPFO members. They are seeking an increase to ₹7,500 per month, along with Dearness Allowance (DA) benefits to offset rising inflation.