Private sector workers under the Employees’ Provident Fund Organisation (EPFO) have been pushing for a hike in their minimum pension, which has been stuck at Rs 1,000 a month since 2014. Members of the EPF contribute 12% of their basic salary to the provident fund, with employers matching that amount. Out of the employer’s contribution, 8.33% goes to the Employees’ Pension Scheme (EPS), while 3.67% is directed to the EPF scheme.
Minimum Pension Increase for EPFO in 2025
As the Budget 2025 approaches, a group of EPS-95 retirees met with Finance Minister Nirmala Sitharaman to advocate for their long-standing request for a minimum pension of Rs 7,500 per month, plus dearness allowance (DA). The EPS-95 National Agitation Committee reported that the finance minister expressed that their requests would be taken into consideration.
Pensioners have been rallying for 7-8 years to boost the minimum pension from Rs 1,000 to Rs 7,500, along with DA benefits and free medical care for retirees and their spouses.
EPFO CBT Meeting
The call for a pension revision is gaining traction as the Central Board of Trustees (CBT) of EPFO is scheduled to meet on February 28, 2025, to determine the interest rate on provident fund deposits for FY 2024-25. While discussions on interest rates will be a primary focus, the topic of pension increases is also expected to be a significant point of discussion.
For years, pensioners and advocacy groups have criticized the current pension scheme, arguing that the Rs 1,000 monthly pension is far too low, especially for those who have dedicated nearly four decades to contributing. With inflation and medical costs on the rise, there’s increasing pressure on the government to tackle these long-standing issues.