A ray of hope has emerged for crores of private sector employees of the Employees’ Provident Fund Organisation. A parliamentary committee has strongly recommended the government to increase the minimum pension of employees,which is currently just ₹1000,to ₹7500. The central government fixed the minimum pension for EPFO subscribers from ₹250 to ₹1000 per month in 2014.
Trade unions and pensioners associations have long been saying that with inflation skyrocketing,the minimum pension should be increased to at least ₹7500 per month. They also say that there has been no increase in this pension amount in the last 11 years,making it difficult for lakhs of pensioners to survive. So let’s know about this important recommendation in detail.
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Parliamentary committee’s strong appeal
According to a report by the New Indian Express,the Parliamentary Standing Committee on Labor,headed by BJP MP Basavaraj Bommai,has strongly urged the central government to substantially increase the amount of minimum pension given under the Employees’ Pension Scheme of the EPFO. At present,this pension is ₹ 1000 per month,which,according to the committee,is very low considering the inflation.
The committee has reiterated its previous recommendation that inflation has increased manifold in 2024 as compared to 2014,and hence it is justified to increase the pension in the same proportion. The committee has further said that keeping in mind the financial implications,the government should take immediate action in this direction in the larger interest of the pensioners and their family members.
How much amount is deposited for pension
The committee also said that 30 years after the launch of the scheme,it is now being evaluated by a third party. The committee believes that this evaluation should be completed by a certain time frame,i.e. by the end of 2025,so that the effectiveness of the scheme and the possibilities of further improvement in it can be assessed.
Let us tell you that 12 percent is deducted for the EPF account on the basic salary of employees working in the private sector. The company also deposits the same amount in the employee’s PF account. Of the amount deposited by the employer,8.33 percent goes to EPS,while the remaining 3.67 percent is deposited in EPF.
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