Millions of EPFO pensioners are waiting for an increase in the minimum pension under the Employees’ Pension Scheme (EPS), 1995.
The government has now confirmed that it has received several requests from trade unions, pensioners’ groups and public representatives seeking a pension hike.
However, the Centre has not announced any increase yet.
The minimum EPS pension continues to remain at Rs 1,000 per month.
Government Explains Why Pension Has Not Been Increased
Replying to a question in the Lok Sabha on July 20, Minister of State for Labour and Employment Shobha Karandlaje said the government is aware of the demands for a higher minimum pension.
The government explained that the Employees’ Pension Scheme is funded through contributions made by employers and the Centre.
The pension fund receives:
8.33% of an employee’s wages from the employer’s contribution.
1.16% contribution from the Central Government, calculated on salaries up to Rs 15,000 per month.
According to the government, all pension payments are made from this fund, which undergoes an annual actuarial assessment to ensure it remains financially sustainable in the long run.
Centre Focuses on Financial Sustainability
While acknowledging the demands of pensioners, the government said any decision to increase the pension must be taken carefully.
It stated that the long-term financial health of the Employees’ Pension Fund and its future liabilities will be key factors before approving any hike.
The Centre also pointed out that it already provides budgetary support for the minimum pension in addition to its regular contribution to the EPS.
What Are Pensioners Demanding?
The EPS-95 National Agitation Committee has been demanding major changes to the pension scheme.
Its key demands include:
Raising the minimum monthly pension to Rs 7,500.
Linking pensions with Dearness Allowance (DA) to protect against inflation.
Providing better financial support to retired EPFO members, many of whom currently receive pensions between Rs 1,000 and Rs 2,000 per month.
Is a Pension Hike Expected Soon?
At present, the government has not announced any increase in the minimum EPS pension or given a timeline for taking a decision.
The latest statement indicates that while the Centre has taken note of the demands from various stakeholders, any revision will depend on the financial sustainability of the pension fund.
For now, EPS pensioners will have to wait for an official announcement regarding any increase in the minimum monthly pension.
